Solution: What is the effective annual interest rate on savings accounts?

(Last Updated On: December 8, 2017)

What is the effective annual interest rate on savings accounts?

Problem Statement: EE Board October 1993

A bank pays one percent interest on savings accounts four times a year. The effective annual interest rate is

  • A. 4.06%
  • B. 1.00%
  • C. 2.04%
  • D. 3.36%

Problem Answer:

The effective annual interest rate on savings accounts is 4.06%.

Solution:

Latest Problem Solving in Engineering Economics (Simple & Compound Interest)

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Solution: What is the effective annual interest rate on savings accounts?
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