2. Eric proposes a business transaction to his partners: they will give him $1000 now,...
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2. Eric proposes a business transaction to his partners: they will give him $1000 now, and he will pay them back $2300 in one year, and finally they will pay him another $1400 in two years. He says because of compound interest it only looks like theyre giving him more, but its actually a fair deal. Show that there is no solution for the effective yield, and interpret what this means.
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