Question 1170313
If r is for the QUARTERLY compounding period rate and for 8 periods (for the two years), then  {{{40000(1+r)^8=40000+800}}}.

{{{(1+r)^8=1.02}}}

{{{1+r=1.02^(1/8)}}}

{{{r=1.02^(1/8)-1}}}

{{{r=0.002479}}}

For YEARLY rate, 0.99%