SOLUTION: PLEASE Help! Using the formula r=(1 + i/n)(^n) -1 r is annual interest rate as decimal i is advertised interest rate as a decimal n is the number of times the interest payment

Question 730202: PLEASE Help!
Using the formula r=(1 + i/n)(^n) -1
r is annual interest rate as decimal
i is advertised interest rate as a decimal
n is the number of times the interest payments are compounded each year
Bank A 4.0 percent
Bank B 5.25 percent
Bank C 6.0 percent
Bank D 6.75 percent
(all compound 12 times a year).
A. Determine the effective interest rate for each.
B. Is it true that the higher the advertised rate the higher the effective rate?
c.if you rewrite the formula for a given value of n as 12 would the rewritten formula linear?
Thank you so much.
Answer by lynnlo(4176) (Show Source): You can put this solution on YOUR website!

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