SOLUTION: Given the rate per compounding period find r, the annual rate. 4.95% per half-year R=%

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Question 1182409: Given the rate per compounding period find r, the annual rate.
4.95% per half-year
R=%

Answer by ikleyn(52781)   (Show Source): You can put this solution on YOUR website!
.

To find the nominal annual rate in this problem, multiply the given semi-annual rate per half-year by 2, the number of halves in a year.


Remember, that doing this way, you obtain only "nominal" annual rate - not the actual annual rate of the account.



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