SOLUTION: ind the effective rate corresponding to the given nominal rate. (Assume a 365-day year. Round your answer to two decimal places.) 7%/year compounded semiannually

Algebra ->  Equations -> SOLUTION: ind the effective rate corresponding to the given nominal rate. (Assume a 365-day year. Round your answer to two decimal places.) 7%/year compounded semiannually       Log On


   

Question 730128: ind the effective rate corresponding to the given nominal rate. (Assume a 365-day year. Round your answer to two decimal places.)
7%/year compounded semiannually
Found 2 solutions by lynnlo, ikleyn:
Answer by lynnlo(4176) About Me  (Show Source):
Answer by ikleyn(53304) About Me  (Show Source):
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Find the effective rate corresponding to the given nominal rate.
(Assume a 365-day year. Round your answer to two decimal places.)
7%/year compounded semiannually
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    The effective annual rate is  %281%2B0.07%2F2%29%5E2-1 = 1.071225 - 1 = 0.071225.    ANSWER

Solved.

The number of days in the year is irrelevant in this problem.