Engineering Board Exam Reviewer · Nominal and Effective Rate of Interest · medium
Find the effective rate of interest equivalent to a nominal rate of 8% compounded quarterly.
- 8.24%
- 8.00%
- 8.16%
- 8.50%
Answer
A. 8.24%
Solution
ER=≤ft(1+0.08/4 )4-1=(1.02)4-1 8.24%.
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