5.54% compounded quarterly

Tschitsch asked Mar 16, 2023

11,858 views

25 votes

Tschitsch asked Mar 16, 2023

2.9k points

Your comment on this question:

Email me at this address if a comment is added after mine:Email me if a comment is added after mine

Privacy: Your email address will only be used for sending these notifications.

Email me at this address if my answer is selected or commented on:Email me if my answer is selected or commented on

Privacy: Your email address will only be used for sending these notifications.

14 votes

Given the formula for annual effective rate:

$effective\text{ rate=(1+}(r)/(m))^(m\cdot n)-1$

Where:

r = interest rate

m = number of compounds per year

n = number of years

Therefore, we have 5.54% = 0.0554:

Saeed Shahini answered Mar 20, 2023

3.3k points

Email me at this address if a comment is added after mine:Email me if a comment is added after mine

Privacy: Your email address will only be used for sending these notifications.

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

1.6m questions

2.0m answers