Answer:
Nominal interest rate semi annual =2%
Nominal interest rate yearly = 4%
Nominal interest rate per 2 year = 8%
4 quarters in 1 year
Explanation:
given data
interest rate = 1%
deposit = $100 per week
interest = 6% per year
solution
when quarterly interest rate is 1%
so that here Nominal interest rate per semi annual period will be
Nominal interest rate semi annual = 1% × 2
Nominal interest rate semi annual =2%
and
Nominal interest rate per year will be
Nominal interest rate yearly = 1% × 4
Nominal interest rate yearly = 4%
and
Nominal interest rate per 2 year will be
Nominal interest rate per 2 year = 1% × 8
Nominal interest rate per 2 year = 8%
and
when Interest rate compounded quarterly is 6% per year
so here Interest period 1 year as interest will be paid annually
and Compounding period is 1 quarter is compounding quarterly
and here
Interest will be compounded 4 times in 1 interest period
so there is 4 quarters in 1 year
