SOLUTION: What interest rate compounded quarterly will yield an effective interest rate of 2%?
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Question 1153386: What interest rate compounded quarterly will yield an effective interest rate of 2%?
Answer by MathLover1(20849) (Show Source): You can put this solution on YOUR website!
The formula for calculating effective yield is as follows:
Where:
= % =
= nominal rate
= ( compounded quarterly)
%
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