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Problem 1: If the effective annual interest rate is 6%, what is the nominal rate or APR (Annual Percentage Rate), given monthly compounding?
Select one:
a. 5.84%
b. 7.02%
c. 6.02%
d. 3.43%
e. 5.12%
Problem 2: Compute the effective annual interest rate, given a nominal rate of 8%, compounded weekly?
a. 8.27%
b. 7.85%
c. 8.56%
d. 7.44%
e. 8.32%
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