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Kaylis [27]
4 years ago
10

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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How can investors receive compounding returns? A: by selecting a savings account that has a higher interest rate B: by investing
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Irish Corporation issued (sold) 15,000 shares of common stock for $65 per share. The bylaws established a stated value of $5 per
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Answer:

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Explanation:

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3 years ago
Superior has provided the following information for its recent year of operation:
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Answer:

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3 0
3 years ago
Ramapo Company produces two products, Blinks and Dinks. They are manufactured in two departments, Fabrication and Assembly. Data
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Answer:

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4 0
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