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Driver
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What is the effective annual rate of interest of 6.5% compounded quarterly?
What is the effective annual rate of interest of 6.3% compounded continuously?
Does anyone know what formula l would use or the process?
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dwi
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a) 6.66%.
You can look this up at the following web page: http://freeonlinecalculator.net/calculators/financial/effective-interest-rate.php
b) 6.50%.
You can look this up at the following web page, which also lists the formulas you need:
http://moneychimp.com/articles/finworks/continuous_compounding.htm
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