Thread: Equivalent rates of interest-Techniques and elements of finance

Sorry I can't type in the writing box for some reason, here's my question

If the interest rate is 7.6% p.a. convertible 2 times a year, find the equivalent nominal rate of interest p.a. if it were payable 12 times a year. (as a %, to 2 decimal places)

How do I do this and what is the answer please, cheers!

Originally Posted by schwanson1

Sorry I can't type in the writing box for some reason, here's my question

If the interest rate is 7.6% p.a. convertible 2 times a year, find the equivalent nominal rate of interest p.a. if it were payable 12 times a year. (as a %, to 2 decimal places)

How do I do this and what is the answer please, cheers!

I think this is the way to go about it:

, so find the effective annual rate . Now,