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g The effective rate of an amount of money invested in an account compounded quarterly is 7.7136 % What is the nominal rate

Respuesta :

The nominal interest rate given the effective rate and the number of compounding is 7.5%.

What is the nominal rate?

The effective rate is the actual interest rate earned on an investment when the rate of compounding is accounted for.

Nominal interest rate = m × [ ( 1 + i)^1/m - 1 ],

Where:

  • M = number of compounding
  • i  = effective interest rate

4 x [(1.077136)^0.25 - 1] = 7.5%

To learn more about the effective annual rate, please check: https://brainly.com/question/4064975

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