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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › interest
sir i created this question
for a proper understanding
Investment Wye offers one interest payment of
20% at the end of its five-year life.
what is the EAR ?
so is this correct ( provided that the above is the question )
(1+0.2)^0.2-1
which is equal to 3.71%
Yes, that is correct.
