Question

Calculate the effective interest rate compounded quarterly of a 13% annual rate.

A) 13.65% B) 14.665% C) 15.65% D) 16.65%

Answer 1

Step-by-step explanation:

Answer:

Effective Annual Rate:

3.2989%

Solution:

i=(1+rm)m−1

i=(1+rm)m−1

i=(1+0.032512)12−1

i=(1+0.032512)12−1

i=0.032989

i=0.032989

I=i×100=3.2989% ok follow me ✌️ samile ✌