Question

Over a 10 year period, an original principal of $4500 accumulated to $6925 in an account in which interest was compounded semiannually. Determine the effective annual rate of interest (rounded to 2 decimal places)

Answer 1

Determine the effective annual rate of interest (rounded to 2 decimal places)

% anual 4,36%

Explanation:

Monthly % anual % semiannualy N Monthly Exponentiation VF

4500 4,36% 2,18% 20 4500 1,54 6.925,41