Question #233740

If the nominal annual interest rate is 12% compounded quarterly, what is the effective annual interest rate?

Expert's answer

"\ud835\udc56=(1+\ud835\udc5f\/\ud835\udc5a)^m-1"

"\ud835\udc56=(1+0.12\/4)^4-1"

"i=0.125509"

"I=i\\times100"

"I=12.5509\\%"

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