5.54% compounded quarterly

Tschitsch asked Mar 16, 2023

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25 votes

Tschitsch asked Mar 16, 2023

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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

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