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Question: Actuarial Science: You lend 15,000 to a friend. Your friend agrees to pay back the loan over 5 years with monthly payments payable at the end of each month. You can reinvest the monthly payments from your friend in a savings account paying interest at a nominal 6%, compounded monthly. The yield rate earned on your investment over the five year period turned out to be a nominal 7.45%, compounded semi-annually. What nominal rate of interest, compounded monthly, did you charge your friend on the loan.

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