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Lahore Gym allows members to pay the members to pay the annual membership fee by a single payment of $240 at the beginning of the year, or by payments of $22 at the beginning of each month. What effective rate of interest is paid by members, who choose to pay by month?

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Definitions:

Non-Random Sample

A sample that is not selected through a random method, potentially leading to biased results due to the method of selection.

Internal Validity

The extent to which a study can demonstrate a causal relationship between variables, minimizing the impact of confounding variables.

External Validity

The extent to which the results of a study can be generalized to other situations and to other people outside of the experimental setting.

Construct Validity

The degree to which a test or instrument measures the theoretical construct or psychological concept it intends to measure.

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