The effective monthly equivalent of 4% compounded semi-annually is ___.
0.04/12 = 0.00333 = 0.333%
Is this correct?
effective rate= (1+i/n)^n -1
= (1+.04/2)^2 -1
monthly effective rate= 1/12 of the above.
0.04/12 = 0.00333 = 0.333%
Is this correct?
= (1+.04/2)^2 -1
monthly effective rate= 1/12 of the above.