Question

What is the equivalent compound quarterly rate for 8% compound monthly? (convert from compound monthly to compound quarterly). Enter your answer below as a percent to 4 decimal places.

Answer 1

Quarterly compounding rate = Monthly compounding rate
(1+r/4)^4 = (1+r/12)^12
(1+r/4)^4 = (1+8%/12)^12
1+r/4 = (1+8%/12)^(12/4)
r = ( (1+8%/12)^(12/4) - 1 ) * 4 =	8.0535%