Solution:
Solution: 34.3%
Working:
Days in period: [35 - 10] = 25;
Periods per year: [365/25] = 14.6;
Interest rate for 30 days = [.02 × $100] / [(1 - .02) × $100] = 0.02041
Effective annual rate = [(1 + .02041)^14.6 - 1] = .3431 = 34.3%
As per policy we have to answer first question
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