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Suppose a savings and loan pay a nominal rate of 2.4 % on savings deposits. Find the effective annual yield if interest is compounded quarterly.

 

The effective annual yield is ______ %.

(Type an integer or a decimal rounded to the nearest thousandth as  needed.)

 Dec 5, 2017

Best Answer 

 #1
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Effective Rate ={1 + 0.024/4}^4 =1.006^4 =1.024216865296 - 1 x 100 =2.422%

 Dec 5, 2017
 #1
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Best Answer

Effective Rate ={1 + 0.024/4}^4 =1.006^4 =1.024216865296 - 1 x 100 =2.422%

Guest Dec 5, 2017

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