4.9 For a Federal Credit Union that offers an interest rate of 8% per year, compounded...

Question

Question

Answer 1

Answer #1

Suppose $ 100 is invested

Post 6 months, amount will be = 100 * (1.0067) ^ 6 = $104.067

Therefore nominal rate is 4.067/100 = 4.07% per 6 months

or 8.14% per annum

Answer 2

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