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What is the equivalent compound quarterly rate for 9% compound monthly? (convert from compound monthly to...

What is the equivalent compound quarterly rate for 9% compound monthly? (convert from compound monthly to compound quarterly). Enter your answer below as a percent to 4 decimal places.

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Expert Solution

Quarterly compounding rate = Monthly compounding rate
(1+r/4)^4 = (1+r/12)^12
(1+r/4)^4 = (1+9%/12)^12
1+r/4 = (1+9%/12)^(12/4)
r = ( (1+9%/12)^(12/4) - 1 ) * 4 = 9.0677%

jeff jeffy answered 2 years ago
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