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What is the nominal rate of interest compounded quarterly if the effective rate of interest on an investment is 5.3%?

 

Any help or steps would be greatly appreciated thanks

 Nov 18, 2015
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What is the nominal rate of interest compounded quarterly if the effective rate of interest on an investment is 5.3%?

 

5.3% effective rate=5.20% comp. quarterly.

1.053^1/4=1.0129945 - 1=.0129945 X 4 X100=5.20%

 Nov 19, 2015

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