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Calculate the implicit annual rate of interest

Problem:

Sharon buys a new leather jacket on credit. The cost of the jacket is $500 and has to be fully paid within 30 days.

But if she pays within 7 days she has to pay only $495.

Calculate the implicit annual rate of interest of the above transactions.

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## Q : Determining the bond worth today

Suppose a State of Maryland bond will pay $1,000 eight years from now. If the going interest rate on these 8-year bonds is 5.5%, how much is bond worth today?