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Business, 26.02.2022 21:10 yasarhan2

For $10,000, you can purchase a five-year annuity that will pay $2,358.65 per year for five years. The payments occur at the beginning of each year. Calculate the effective annual interest rate implied by this arrangement. a. 10 percent.

b. 8 percent.

c. 9 percent.

d. 11 percent.

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