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.)

Do it the same way I just showed you in your previous post
http://www.jiskha.com/display.cgi?id=1304715894
Same type of question.posted by Reiny

Just 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.posted by Reiny

Okay i think i understand.
annually: 6%
semiannually: 6.09%
quarterly: 6.14%
monthly: 6.17%posted by Dee
Respond to this Question
Similar Questions

Finite Math
Find the effective rate corresponding to the given nominal rate. (Round your answer to two decimal places.) 11%/year compounded semiannually 
Math
Find the effective rate corresponding to the given nominal rate. (Round your answer to the nearest hundredth of a percentage point.) (a) 4%/year, compounded quarterly ? % (b) 3%/year, compounded monthly ? % 
Math
Find the effective rate corresponding to the given nominal rate. (Round your answer to the nearest hundredth of a percentage point.) (a) 4%/year, compounded quarterly ? % (b) 3%/year, compounded monthly ? % 
compounded interest
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 
Compound Interest
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 
math & finance
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 
math help plz!
DigiCom wants to drop the effective rate of interest on its credit card by 2%. If it currently charges a nominal rate of 8% compounded daily, at what value should it set the new nominal rate? Note: Please make sure your final 
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 
business maths
For an investment to double in value during a 12year period, a. What annually compounded rate of return must it earn? (Round your answer to two decimal places.) Annually compounded rate of return % b. What monthly compounded rate 
math
Find the effective rate corresponding to the given nominal rate. (Round your answer to the nearest hundredth of a percentage point.) (a) 7%/year, compounded daily % (b) 6%/year, compounded monthly %