math

. The nominal interest rate on your account is 7%; your semi-annually effective rate of interest (APY) will be

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asked by tota
  1. effective rate
    =(1+i/n)^n - 1
    where n is the number of compounding per year.
    For 7% compounded semi-annually, n=2, and i=0.07
    effective rate
    =(1+0.07/2)²-1
    = 7.1225%

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