Friday

April 18, 2014

April 18, 2014

Posted by **Dee** on Friday, May 6, 2011 at 5:09pm.

- Finite Math -
**Reiny**, Friday, May 6, 2011 at 5:18pmDo it the same way I just showed you in your previous post

http://www.jiskha.com/display.cgi?id=1304715894

Same type of question.

- Finite Math -
**Reiny**, Friday, May 6, 2011 at 5:55pmJust saw your other post.

What don't you understand?

I will do the quarterly rate problem.

Let the effective annual rate be i

so the interest factor will be (1+i)^1 for one year

(you should know the (1+i)^n part)

you want this to be equal to a rate of 6% per annum compounded quarterly , or

a rate of .06/4 or .015 per quarter, with n = 4

so (1+i)^1 = (1+.015)^4

1+i = 1.015^4

1+i = 1.06136551

i = .06136551

you wanted 2 decimals, so

the effective annual rate is 6.14 %

see if you can the others the same way.

- Finite Math -
**Dee**, Friday, May 6, 2011 at 9:04pmOkay i think i understand.

annually: 6%

semiannually: 6.09%

quarterly: 6.14%

monthly: 6.17%

**Related Questions**

Finite Math - Find the effective rate corresponding to the given nominal rate. (...

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 - Find the effective rate corresponding to the given nominal rate. (Round ...

compounded interest - A bank offers a rate of 5.3% compounded semi-annually on ...

Compound Interest - A bank offers a rate of 5.3% compounded semi-annually on its...

math & finance - A bank offers a rate of 5.3% compounded semi-annually on its ...

Finite Mathematics - If a merchant deposits $1,500 annually at the end of each ...

math help plz! - DigiCom wants to drop the effective rate of interest on its ...

Seneca - Henrietta went to a bank and obtained a personal loan with an interest ...