First simple bank pays 98 percent simple interest on its


First Simple Bank pays 9.8 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually.

Required: What rate should the bank set if it wants to match First Simple Bank over an investment horizon of 7 years? (Round your answer as directed, but do not us to rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16)

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Financial Management: First simple bank pays 98 percent simple interest on its
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