document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1076468>Question 1076468</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Why, in my finance class, when asked this question - You invest $1,000 for 3 years at 6% per annum compounding quarterly. What is the equivalent annual simple rate of interest? - am I told the answer is 6.521%, when my calculator shows 6.136%, when I preform (1195.62/1000)^(1*3)-1. Am I missing something when trying to work out interest? Any answers would be greatly appreciated. Thank you. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #691083 by </B><A HREF=/tutors/aboutme.mpl?userid=jorel1380><B>jorel1380(3719)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jorel1380><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/cgi-bin/show-face.mpl?user=jorel1380><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=691083\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The total interest accrued after 3 years of quarterly compounding would be:<BR>\n" );
document.write( "(1 + .06/4)^(3*4)=(1.015)^12=1.1956181714615352515612900979004<BR>\n" );
document.write( "1.1956181714615352515612900979004 - 1= 0.19561817% after 3 years<BR>\n" );
document.write( "0.19561817/3=.065206, or an effective simple interest rate of 6.5206%. &#9786;&#9786;&#9786;&#9786; </SPAN>\n" );
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