document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=176415>Question 176415</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A certificate of deposit mhas an annual rate of 6% compounded quarterly. Find the effective rate of interest. Show your work. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #131519 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=131519\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A certificate of deposit has an annual rate of 6% compounded quarterly. Find the effective rate of interest. <BR>\n" );
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document.write( "A(t) = P(1+(r/n))^(nt)<BR>\n" );
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document.write( "Annual multiplier = (1+ (0.06)/4)^(4*1)<BR>\n" );
document.write( "= (1+0.015)^4<BR>\n" );
document.write( "= 1.06136<BR>\n" );
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document.write( "Annual interest rate = 0.06136 or 6.136%<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.\r<BR>\n" );
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