Calculus with Applications (10th Edition)

Published by Pearson
ISBN 10: 0321749006
ISBN 13: 978-0-32174-900-0

Chapter 2 - Nonlinear Functions - 2.6 Applications: Growth and Decay; Mathematics of Finance - 2.6 Exercises - Page 108: 15


The effective rate is 9.2%

Work Step by Step

Using the formula, we get $(1 + \frac{0.09}{2})^{2} - 1=0.092$ The effective rate is 9.2%
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