Problema Solution
1. determine the annual interest rate for $37,104.74 with a rate of 3.5% and a reduced rate of 1%
Answer provided by our tutors
annual interest rate for $37,104.74 with a rate of 3.5% (if compounded monthly):
(1+0.035)^12 = 1.511 (so 51.1% annual interest rate)
if 1% then: (1+0.01)^12 = 1.127 ( so 12.7% annual interest rate)
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