SOLUTION: What is the effective yield of a savings account that is compounded semi annually at a nominal rate of 6.79%? Thank you

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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(48568) About Me  (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%?
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A(t) = Ao(1+(0.0679/2))^(2*1)
A(t) = Ao(1.06905..)
Effective rate is 6.905%
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Cheers,
Stan H.