SOLUTION: Find the effective rate corresponding to the given nominal rate. (Assume a 365 day year. Round your answers to the nearest thousandth of a percentage point.) (a) 6.5%/year co

Algebra ->  Linear-equations -> SOLUTION: Find the effective rate corresponding to the given nominal rate. (Assume a 365 day year. Round your answers to the nearest thousandth of a percentage point.) (a) 6.5%/year co      Log On


   

Question 1076335: Find the effective rate corresponding to the given nominal rate. (Assume a 365 day year. Round your answers to the nearest thousandth of a percentage point.)
(a) 6.5%/year compounded monthly
(b) 6.5%/year compounded daily
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!




Where is the effective rate, is the nominal rate, and is the number of compounding periods per annum.

Plug in your numbers and do the arithmetic.

John

My calculator said it, I believe it, that settles it