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Question 4.T-Y-S.Y: An effective annual interest rate of 35% has been determined...

An effective annual interest rate of 35 \% has been determined with continuous compounding. What is the nominal interest rate that Was compounded continuously to get this number? (4.16)

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\begin{array}{ll}& 0.35=e^{r}-1 \quad e^{r}=1.35 \\& r=\ln (1.35) \\& \underline{r}=30 \%\end{array}

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