The newspaperis published 252 days per year 5 days per week


The Bawl Street Journal costs $580, payable now, for a 2-year subscription. The newspaperis published 252 days per year (5 days per week, except holidays). If a 10% nominal annual interest rate, compounded quarterly, is used:

(a) What is the effective annual interest rate in this problem?

(b) Compute the equivalent interest rate per 1/252 of a year.

(c) What is a subscriber's cost per copy of the newspaper, taking interest into account?

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Business Economics: The newspaperis published 252 days per year 5 days per week
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