Answer
effective rate of interest
Work Step by Step
The effective rate of interest is equal to the annual simple interest rate that would make the same amount as either continuously compounding for $1$ year or compounding $n$ times per year.
Precalculus (10th Edition)
by Sullivan, Michael
Published by
Pearson
ISBN 10:
0-32197-907-9
ISBN 13:
978-0-32197-907-0
Chapter 5 - Exponential and Logarithmic Functions - 5.7 Financial Models - 5.7 Assess Your Understanding - Page 320: 6
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