Effective Annual Interest = (1+Annual interest rate/Number of compoundings)^Number of compoundings in a year - 1
= (1+15%/4)^4 - 1
= 15.8650%
i.e. 15.87%
3. Effective/Nominal Interest (5 points) Given a nominal annual interestrate of 15%, compounded quarterly, calculate the...
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its all one big question. Find the equivalent interest rates to the given nominal interest rates. a. Nominal interest rate compounded quarterly that is equivalent to an effective interest rate of 7.5% 0.00 % Round to two decimal places b. Nominal interest rate compounded monthly that is equivalent to 8% compounded quarterly 0.00 % Round to two decimal places c. Nominal interest rate compounded monthly that is equivalent to 6.5% compounded annually 0.00 % Round to two decimal places Brian...
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