Hi, I really do not understand this question?: "Calculate the effective annual interest rate for 20% p.a., compounded every 4 months?". Could someone please

Thank you very much Melody, How on earth do you know all these things?..

Hi, I really do not understand this question?: "Calculate the effective annual interest rate for 20% p.a., compounded every 4 months?". Could someone please help me with this??. Thank you kindly..

\(1(1+0.20/3)^3=1(1+r)^1\\ 1(1+0.20/3)^3=1(1+r)^1\\ 1.21362963=1+r\\ r=0.21362963\\ \mbox{effective rate is 21.362963% p.a.} \)

I am very pleased to help you :)

"How on earth do you know all these things?."

You asked so I will answer.     LOL

I have a BSc degree in Mathematics and a Diploma of Education.

I taught in high schools for years and I have also taught commercial mathematics, and other subjects, at College.

So....I guess I should know this stuff.      

I want to point out though that some of the other mathematicians here know far more than I do.     

It is a great honour to work with the other mathematicians and also an honour to work and play with all our regular members and guests.     

Thanks Everyone                    

                                                                                                     ♪ ♫       Melody    ♪ ♫