Question: 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)