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1. The general relation between the simple annual rate R with payments with m time per year and the effective annual rate, Ra

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Answer #1

Ra is the effective annual rate
R is simple annual rate R

(1+Ra)=(1+R/m)^m
=>(1+Ra)^(1/m)=(1+R/m)
=>(1+Ra)^(1/m)-1=R/m
=>R=m*((1+Ra)^(1/m)-1)

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