Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Get immediate and reliable solutions to your questions from a community of experienced experts on our Q&A platform. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.
Sagot :
For instance, an effective interest rate of 6.17% is the same as a nominal interest rate of 6% compounded monthly. Every month, 6% compounded is credited as 6%/12 = 0.005.
How do you calculate effective interest compounded quarterly?
The calculations and formula are as follows: Effective annual interest rate = (nominal rate / number of compounding periods) - 1 + (number of compounding periods) - (number of compounding periods) - 1. This would be: 10.47% = (1 + 10% / 12)) 12 - 1 for investment A. It would be as follows for investment B: 10.36% = (1 + (10.1% / 2)) 2 - 1.
How do I calculate the effective interest rate?
A straightforward formula can be used to determine the effective interest rate: r = (1 + i/n)n - 1. This equation has three parts: the stated interest rate (I), the effective interest rate (R), and the number of compounding periods (N) per year.
TO learn more about interest rate visit:
https://brainly.com/question/13324776
#SPJ4
Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.
