A. An interest rate equals to 1% per month. What it will be the annual effective...

A. An interest rate equals to 1% per month. What it will be the annual effective interest rate?
B. An interest rate equals to 4% per quarter compounded monthly. What it will be the annual effective interest rate?
C. An interest rate equals to 7% per half-year (6months) compounded bi-annually (every two years). What it will be the annual effective interest rate?

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Solution is given below.

Rahul Sunny answered 2 years ago

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