A business receives $235,648.98 today from its bank and signs a one-year note that has a maturity value of $250,000.00. Determine the effective annual interest rate on this loan, and determine the nominal annual rate assuming semiannual compounding. You may find the following form helpful.
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Half-Year
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Half-Year Start of Period
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Interest at ?%
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Loan Balance at End of Period
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First
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$235,648.98
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Second
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$250,000.00
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