A Fund Pays Interest at J₁ = 5% for the First

question 52

Multiple Choice

A fund pays interest at j₁ = 5% for the first 3 years,j₄ = 10% for one year,and j₁₂ = 12% for one year.What is the equivalent nominal interest rate,j₂,earned over the 5 years?

• A)7.56%
• B)7.43%
• C)7.40%
• D)7.23%

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