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4 years ago

If the nominal annual interest rate is 12% compounded quarterly, what is the effective annual interest rate?

Business

1 answer:

irina1246 [14]4 years ago

5 0

Answer:

the effective annual interest rate is 12.55 %

Explanation:

The computation of the effective annual interest rate is shown below:

Effective annual interest rate is calculated by using the following formula

= {(1 + interest ÷ number of compounding period)^number of compounding period} - 1

= (1 + .12 ÷ 4)^4-1

= (1.03)^4 - 1

r = 1.1255 - 1

r=.1255

hence, the effective annual interest rate is 12.55 %

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4 years ago

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3 years ago

Rain spoils the strawberry crop, the price of strawberries rises from $2 to $4 a box, and the quantity demanded decreases fr

Veseljchak [2.6K]

Answer:

a. Price elasticity of demand is 3.5.

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