1. ## interest rate

Find the effective rate of interest corresponding to a nominal rate of 7%/year compounded annually, semiannually, quarterly, and monthly. (Round your answers to two decimal places.)
annually semiannually quarterly monthly

using the formual of $r=(1+\frac{i}{n})^n-1$ where n is the number of compounding periods;
Semiannual - $r=(1+\frac{0.07}{2})^2-1=7.12\%$
Quarterly - $r=(1+\frac{0.07}{4})^4-1=7.19\%$
Monthly - $r=(1+\frac{0.07}{12})^{12}-1=7.23\%$