Section 5.1 Compound Interest
E↵ective Rate of Interest Formula: r eff = ⇣ 1+ r m ⌘ m 1 Calculator Steps: Press APPS ,1,scrolldownto Eand hit ENTER↵ . The format is E↵(annual interest rate as a percentage, the number of compounding periods per year) 9. Find the e↵ective rate of interest corresponding to a nominal rate of 11.5%/year compounded in the following ways. ................
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