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Shtirlitz [24]
2 years ago
13

A bank is advertising the following savings account.

Mathematics
1 answer:
Vlad1618 [11]2 years ago
8 0

Answer:

6.66%

Step-by-step explanation:

((1 + r/m)^n) - 1

Interest rate , r = 6.5%

m = number of compounding times per period = 4 (quarterly interest)

((1 + 0.065/4)^4) - 1

((1 + 0.01625) ^4) - 1

((1.01625)^4) - 1

1.06660 - 1

= 0.0666

0.0666 * 100%

= 6.66%

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