August 2011
Intermediate to advanced
500 pages
17h 16m
English
Content preview from Sports Finance and Management
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Stadium Financing ◾ 169
e eective annual rate is 10.52 percent (e
.1
-1 = .1052). is rate can then be used in
the equations above, or using a nancial calculator, to solve for the future value or pres-
ent value of an annuity.
e annual percentage rate (APR) is equal to the nominal annual rate of inter-
est and the annual percentage yield (APY) is equal to the eective annual rate of
interest. ese rates must often be disclosed by banks or credit cards companies.
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