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Instructions Complete the following problems using either a financial calculator or a spreadsheet program. Do not...

Instructions

Complete the following problems using either a financial calculator or a spreadsheet program. Do not use interim rounding, state your answers as positive values, to two decimal places for dollar or period values and four places for percentages stated as decimals; do not label answers with symbols such as $ or %. For example, 10.5% should be input as .1050.

An investment with quarterly compounding has a nominal rate of 0.0917. The effective rate is:

Solutions

Expert Solution

The effective rate is calculated as:-

=(1+nominal rate/n)^n-1

=(1+0.0917/4)^4-1

=0.095

ekkarill92 answered 2 years ago
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