Homework Answers
Effective Rate=(1+Interest rate/365)^365-1 =(1+7%/365)^365-1
=7.25%
Effective rate for 7 months =(1+Interest Rate/365)^(7/12*365)-1
=(1+7%/365)^(7/12*365)-1=4.16744%
Account Value =PV*(1+4.16744%) =1000*(1+4.16744%) =1041.67
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