Mathematics
PURVI9898
3

Wyatt is paying back a loan with a nominal interest rate of 13.62%. If the interest is compounded quarterly, how much greater is Wyatt’s effective interest rate than his nominal interest rate The correct answer is D.0.71 percent points

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(1) Answers
LashaunTrolinger984

R=(1+i/m)^m)-1 R=(1+0.1362/4)^4)-1=0.1433*100=14.33% So 14.33%-13.62%=0.71

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