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Wyatt is paying back a loan with a nominal interest rate of 13.62%. If the interest is compounded quarterly, how much greater is Wyatt’s effective interest rate than his nominal interest rate

The correct answer is
D.0.71 percent points

User Bachrc
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1 Answer

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R=(1+i/m)^m)-1
R=(1+0.1362/4)^4)-1=0.1433*100=14.33%
So 14.33%-13.62%=0.71
User Bob Roberts
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