Answered

At Westonci.ca, we make it easy to get the answers you need from a community of informed and experienced contributors. Experience the ease of finding quick and accurate answers to your questions from professionals on our platform. Join our platform to connect with experts ready to provide precise answers to your questions in different areas.

What interest rate, compounded semiannually, results in an annual effective rate of 6%? Input your answer as a percentage
rounded to two decimal places and omit the percent sign (i.e 6.25% should be input as 6.25.)

Sagot :

The semi-annual rate of interest is 5.91%.

Given that,

  • The annual rate of interest is 6%.

The following formula should be used:

= (((Effective annual rate of interest + 1)^(1 ÷ number of compounding)) - 1)× number of compounding

= (((0.06 + 1)^(1 ÷ 2)) - 1)×2

= 0.0591

= 5.91%

Therefore we can conclude that the semi-annual rate of interest is 5.91%.

Learn more about the rate of interest here: brainly.com/question/13324776

Thank you for visiting. Our goal is to provide the most accurate answers for all your informational needs. Come back soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.