How much would $5,500 due in 100 years be worth today if the discount rate were 6.5%? a. $11.75 b. $26.01 Oc. $10.13 d. $25.77 e. $23.64

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.