SOLUTION: What is the effective annual rate of an investment that pays 6% for 5 years, compounded semi-annually?
Algebra.Com
Question 1015073: What is the effective annual rate of an investment that pays 6% for 5 years, compounded semi-annually?
Answer by fractalier(6550) (Show Source): You can put this solution on YOUR website!
We take (1 + .06/2)^(5*2) = 1.344 and divide the .344 by 5 and get
.344 / 5 = .0688 or about 6.88% per year effective annual rate...
RELATED QUESTIONS
What is the effective annual rate of investment that pays 6% for 5 yrs compounded... (answered by Boreal)
what annual rate compounded semi-annually is equivalent to an effective rate of... (answered by ewatrrr)
Suppose that a savings account pays an effective rate of interest of 9 percent. What is... (answered by ankor@dixie-net.com)
14.Determine which of the following investments will have the greater rate of return.... (answered by Theo)
What is the future value of an initial investment of $5000 at annual rate of 10% interest (answered by rfer)
I have a few similar questions, so I preferred submitting them in a single question... (answered by ankor@dixie-net.com)
An investment of $10000 is guaranteed to have a return of $25000 in 20 years. If the... (answered by jim_thompson5910)
A Fletchbuild coupon bond matures in four years, pays an semi-annual coupon rate
of 10.5 (answered by Theo)
1. Ellen has $8000 to invest in an RESP (Registered Education Savings Plan) for 7 years.... (answered by josmiceli)