The effective rate is calculated in the following way:
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:
Answer:
Step-by-step explanation:
The answer are will not and below
Answer:
78.40
Step-by-step explanation:
Take 9.80 and times it by 8 to get 78.40
What do you need help with?
Yes that should be correct