Question
a loan of $8,500 compounded quarterly for five years at 8% what is the effective interest rate for the loan
Answers
Reiny
Did you mean the effective annual interest rate ?
if so, then
(1+i) = (1.02)^4
1+i = 1.0824..
i = .0824
or appr 8.24% per annum
if so, then
(1+i) = (1.02)^4
1+i = 1.0824..
i = .0824
or appr 8.24% per annum