Find the effective rate corresponding to the given nominal rate.

label Calculus
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

Jul 9th, 2015

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6%/12 = 0.5%

the annual effective is

(1+0.005)^12 -1=  6.168%

5%/4 = 1.25% 

the annual effective rate is 

(1.0125)^4 -1 = 5.095%

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Jul 9th, 2015

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