SOLUTION: What is the effective yield of a savings account that is compounded semi annually at a nominal rate of 6.79%?
Thank you
Algebra.Com
Question 134514: What is the effective yield of a savings account that is compounded semi annually at a nominal rate of 6.79%?
Thank you
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
What is the effective yield of a savings account that is compounded semi annually at a nominal rate of 6.79%?
---------------
A(t) = Ao(1+(0.0679/2))^(2*1)
A(t) = Ao(1.06905..)
Effective rate is 6.905%
================
Cheers,
Stan H.
RELATED QUESTIONS
The Happy Savings Bank offers a nominal interest rate of 6% compounded quarterly, whereas (answered by LinnW)
Suppose that a savings account pays an effective rate of interest of 9 percent. What is... (answered by ankor@dixie-net.com)
What nominal rate compounded semi-annually is equivalent to a 10%
effective... (answered by ikleyn)
A person pays interest on a loan semi-annually at a nominal rate of 16%. What is the... (answered by Theo,MathTherapy)
1. What nominal rate compounded semi-annually is equivalent to a 10%
effective rate?... (answered by ikleyn)
A passbook savings account has a rate of 5%. Find the effective annual yield if the... (answered by ewatrrr,ikleyn)
What is the effective annual rate of an investment that pays 6% for 5 years, compounded... (answered by fractalier)
A bank features a savings account that has an annual percentage rate of
3.2 % with... (answered by Boreal)
I have a few similar questions, so I preferred submitting them in a single question... (answered by ankor@dixie-net.com)