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12b.3

BBrian5y ago
Dear sir In this question why did we use effective annual interest rate Why couldn’t we just Apply the compounding interest formula and solve this question Why did we Take EAR into the picture Thank you
John MoffatJohn MoffatTutor5y ago#1
You could do it that way and arrive at the same answer. How you get to the answer does not matter in the exam (because nobody will look at your workings :-) )
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