SOLUTION: What is the effective annual rate of investment that pays 6% for 5 yrs compounded semiannual

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Question 1147182: What is the effective annual rate of investment that pays 6% for 5 yrs compounded semiannual
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
this is (1+(.06/2))^2-1, the .06 the interest rate, the 2 the number of compounding periods.
This is 1.03^2-1=0.0609=6.09%