calc
posted by Anonymous .
What rate of interest compounded quarterly will yield an effective interest rate of 8%?

calc 
Reiny
let the quarterly rate be i
then (1+i)^4 = (1+.08)^1
(1+i)^4= 1.08
take 4th root of both sides
1+i= 1.0194265..
i = .019426..
4i= .077706..
So the annual rate compounded quartely is
7.77% correct to 2 decimals
Respond to this Question
Similar Questions

math
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 … 
Math  Compound
If a bank offers interest at a nominal rate of 6%, how much greater is the effective rate if interest is compounded continuously than if the compounding is quarterly? 
Math
Bank A is offering an interest rate of 6.60% compounded monthly, while bank B is offering an interest rate of 6.67% compounded quarterly. The effective rate offered by bank A =? 
math
An amount of $3000 was deposited in a bank at a rate of 2% annual interest compounded quarterly for 3yrs. The rate then increased to 3% annual interest and ws compounded quarterly for the next 3 yrs. If no money was withdrawn what … 
Finite Math
Find the effective rate of interest corresponding to a nominal rate of 6%/year compounded annually, semiannually, quarterly, and monthly. (Round your answers to two decimal places.) 
Math
Mr. Nielson wants to borrow $1,000 for 2 years. He is given the choice of i) simple interest at 12%, or ii) a loan at 10% compounded monthly. Which loan results in less interest due ? 
math
Compute the compound quarterly amount after 1 year for $100 invested at 12% interest compounded quarterly. What simple interest rate will yield the same amount in 2 years? 
math
Shannon invests $3,000, at 8% interest, compounded quarterly for one year. Use Table 111 to calculate the effective interest rate for her investment. (Round the effective rate to the nearest hundredth percent.) 
math
Phillip opened a savings account with an annual interest rate of 8% and an initial deposit of $3500. If his interest is compounded quarterly, how much is in Jeffreyâ€™s account after 2 years? 
math
Compute effective rate of interest where nominal rate is 8% compounded quarterly?