What is the effective quarterly interest rate

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Reference no: EM131886602

Assume that the annual interest rate is 10%.

a. What is the effective quarterly interest rate?

b. Now assume that annual interest rates in years 1-3 are given by (resp.):10%,15%,20%. What is the 3-year holding rate? What is the (3-year) annualized rate?

Reference no: EM131886602

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