document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1118759>Question 1118759</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Determine the effective rate for each of the following:<BR>\n" );
document.write( "        a.  19% compounded semi-annually<BR>\n" );
document.write( "	b.  19% compounded quarterly<BR>\n" );
document.write( "	c.  19% compounded bi- monthly<BR>\n" );
document.write( "	d.  19% compounded monthly<BR>\n" );
document.write( "	e.  19% compounded annually<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #734189 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><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=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=734189\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> 19% per year compounded annually is equal to 19/1 = 19% per year.\r<BR>\n" );
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document.write( "19% per year compounded semi-annually is equal to 19%/2 = 9.5% per semi-annual period.\r<BR>\n" );
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document.write( "19% compounded quarterly is equal to 19% / 4 = 4.75% per quarter.\r<BR>\n" );
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document.write( "19% compounded monthly is equal to 19% / 12 = 1.5833333333% per month.\r<BR>\n" );
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document.write( "19% compounded bi-monthly is determined by how bi-monthly is interpreted.\r<BR>\n" );
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document.write( "it can be interpreted as twice a month, or it can be interpreted as every 2 months.\r<BR>\n" );
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document.write( "both interpretations are, unfortunately, valid, according to the internet.\r<BR>\n" );
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document.write( "my own interpretation, however, takes into account that 2 payments per year would be semi-annual payments, not bi-annual payments.\r<BR>\n" );
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document.write( "therefore, i would assume bi-monthly means every 2 months, rather than twice a month, which would be interpreted as semi-monthly if you use the same logic as applied to semi-annually.\r<BR>\n" );
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document.write( "if bi-monthly is interpreted as twice a month, then the bi-monthly interest rate would be 19% 24 = .791666666667% per half month.\r<BR>\n" );
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document.write( "if bi-monthly is interpreted as every other month, then the bi-monthly interest rate would be 19% / 6 = 3.1666666667% per every 2 months.\r<BR>\n" );
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document.write( "i would go with every 2 months assumption, but do not really know what others would assume.\r<BR>\n" );
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