Sunday
December 21, 2014

Homework Help: math

Posted by john on Tuesday, September 19, 2006 at 11:06pm.

find the effectivee rate correspoding to 3% compounded quarterly


The formula for effective rate I found is (1+ i/n)^n - 1
where i is the annual rate as a decimal and n is the number of periods.
Here i=.03 so the effective rate is and n is 4 since there are 4 compounding periods.
(1+ .03/4)^4 - 1 = something you can do. If you want it as a percentage, multiply the number by 100 an use the % symbol.

BTW, are you the person who asked this question on Sunday?
"you have deposited 1000 dollars in your savings account with n annual interest rate of 4 percent compounded monthly. how much money are you going to have in your account after six months?"
"well theres another part of it if you could help me with.

"in the same problem find the effective interest rate after six months? "

You wanted the effective interest rate when i=.04 and the compounding was every 6 mos.

I only ask because I had to repost that one.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

math - An amount of $3000 was deposited in a bank at a rate of 2% annual ...
math - also, what formula would i have to use for this: Effective Rate An ...
Math - The annual interest rate on an investment is 8%. What is the quarterly ...
Math - Compound - If a bank offers interest at a nominal rate of 6%, how much ...
math help plz! - DigiCom wants to drop the effective rate of interest on its ...
math modeling - Suppose that you invested $1,442 at the annual rate of 4.60% ...
Math - Find the effective rate corresponding to the given nominal rate. (Round ...
Math - Find the effective rate corresponding to the given nominal rate. (Round ...
math - you have deposited 1000 dollars in your savings account with n annual ...
Finite Math - Find the effective rate of interest corresponding to a nominal ...

Search
Members