Answer
The effective rate is $6.17\%$
Work Step by Step
$6\%$ compounded quarterly
Using the formula, we get
$(1+\frac{0.06}{12})^{12}-1=(1.0005)^{12}-1\approx 0.0617$
The effective rate is $6.17\%$
Calculus with Applications (10th Edition)
by Lial, Margaret L.; Greenwell, Raymond N.; Ritchey, Nathan P.
Published by
Pearson
ISBN 10:
0321749006
ISBN 13:
978-0-32174-900-0
Chapter 2 - Nonlinear Functions - Chapter Review - Review Exercises - Page 114: 97
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