Solution: What is the effective annual interest rate of 7.5% compounded quarterly?

(Last Updated On: December 8, 2017)

What is the effective annual interest rate of 7.5% compounded quarterly?

Problem Statement: ME Board October 1996

An interest rate is quoted as being 7.5% compounded quarterly. What is the effective annual interest rate?

  • A. 7.71%
  • B. 7.22%
  • C. 15.78%
  • D. 21.81%

Problem Answer:

The effective annual interest rate of 7.5% compounded quarterly is 7.71%.

Solution:

Solution: What is the effective annual interest rate of 7.5% compounded quarterly?

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Solution: What is the effective annual interest rate of 7.5% compounded quarterly?
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