compounded interest
posted by Thara on .
A bank offers a rate of 5.3% compounded semiannually on its four year GICs(Guaranteed Investment Certificates). What monthly and annually compounded rates should it quote in order to have the same effective interest rate at all three nominal rates?

5.3% annual rate compounded semiannually is the same as
(1+.053/2)²
=1.05370
=5.370% compounded annually
compounded monthly (6 times for semiannual),
(1+.053/2) = (1+r)^6
r=((1.0265)^{(1/6)}1)*6
=5.242409% 
$10,000 deposited into savings account day Katie was born 18th birthday 6.5% compounded monthly how much in the account on 18th birthday