Question 1167250
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Find the nominal rate corresponding to an effective {{{highlight(annual)}}} rate of 5.85% if interest is compounded quarterly.
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            See how I edited your post in order for it would make sense.


 
<pre>
Let "r" be the nominal rate.


Then your equation is


    {{{(1+r/4)^4}}} = 1.0585.


Take the root of the degree 4 from both sides


    1 + r = 1.014315.


It implies


    r = 1.014315 - 1 = 0.014315.      


Then the nominal annual rate is 4*0.014315 = 0.05726 = 5.726%.       <U>ANSWER</U>
</pre>

Solved.


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To see many other similar solved problems, look into the lesson

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/logarithm/Problems-on-discretely-compound-accounts.lesson>Problems on discretely compound accounts</A> 

in this site, and learn the subject from there.



After reading this lesson, you will tackle such problems on your own without asking for help from outside.


Also, &nbsp;you have this free of charge online textbook in ALGEBRA-I in this site

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson>ALGEBRA-I - YOUR ONLINE TEXTBOOK</A>.


The referred lesson is the part of this online textbook under the topic "<U>Logarithms</U>".



Save the link to this online textbook together with its description


Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson


to your archive and use it when it is needed.



Happy learning (!)