You are given a loan on which interest is charged over a 4

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You are given a loan on which interest is charged over a 4 year period as follows:

an effective rate of discount of 6% for the first year

a nominal rate of discount of 5% compounded every 2 years for the second year

a nominal rate of interest of 5% compounded semiannually for the third year

a force of interest of 5% for the fourth year

Calculate the annual effective rate of interest over the 4 year period.

Reference no: EM13641239

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