Question 980438
Effective Rate = (1 + i/n)^n - 1


Effective Rate = (1 + 0.08/4)^4 - 1


Effective Rate = (1 + 0.02)^4 - 1


Effective Rate = (1.02)^4 - 1


Effective Rate = 1.08243216 - 1


Effective Rate = 0.08243216


Effective Rate = 8.243216%


The effective rate is 8.24%