The effective rate is calculated in the following way:
$r = {(1 + \frac{i}{n} )}^{n} - 1$
where r is the effective annual rate, i the interest rate, and n the number of compounding periods per year (for example, 12 for monthly compounding).
our compounding period is 2 since the bank pays us semiannually(two times per year) and our interest rate is 8%
so lets plug in numbers:
$r = {(1 + \frac{8\%}{2}) }^{2} - 1 \\ r = {(1 + \frac{1}{25}) }^{2} - 1 \\ r = \frac{676}{625} - 1 \\ r = 0.0816 \: or \: 8.16\%$

5 0

2 years ago

Shakila bought a purse for $120. the tax rate is 9%. what is the total amount Shakila paid?

olga nikolaevna [1]

Shakila paid $130.80 in total.
Explanation: 120*1.09=130.80

7 0

2 years ago

Gabrielle's age is three times Mikhail's age. The sum of their ages is 84. What is Mikhail's age?

Whitepunk [10]

Answer: 21

Step-by-step explanation:

84 divided by 4 = 21 since grabielle is 21, and then mikhail is gonna be 3 times more so it’s gonna be 63