What nominal interest rate compounded semi-annually is equivalent to 4.25% compounded quarterly? % Round to two decimal places
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25% compounded quarterly. We can use the formula: (1 + r/n)^n - 1 where r is the nominal annual interest rate and n is the number of compounding periods per year. Plugging in the values, we get: (1 + 0.0425/4)^4 - 1 = 0.04334 So the effective annual interest Show more…
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