What compound interest rate j12 is equivalent over 10-year period to a compound interest rate of i=1.28 % for 9 years followed by a compount interest of i2=14.52 % for the next 1 years ? Answer: 0.0253

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 8MC: Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future...
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What compound interest rate j12 is equivalent over 10-year period to a
compound interest rate of i1=1.28 % for 9 years followed by a compount
interest of i2=14.52 % for the next 1 years ?
Answer: 0.0253
Transcribed Image Text:What compound interest rate j12 is equivalent over 10-year period to a compound interest rate of i1=1.28 % for 9 years followed by a compount interest of i2=14.52 % for the next 1 years ? Answer: 0.0253
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