A student is deciding whether to buy two 1-semester parking permits or an annual permit.
Annual permit: costs $180 due August 15th
Semester permit: costs $130 due August 15th and January 15th
a. What is the monthly interest rate that would make these two cash flows equivalent?
b. What is the annual effective rate?
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A student is deciding whether to buy two 1-semester parking permits or an annual permit.
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