Determine the effective annual rate of interest charged on a loan if the nominal rate is 5.4% pr annum, compounded quarterly.

LOL, I dont get it:P

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- Nov 5th 2008, 06:18 AMmcinnesinterest rates
Determine the effective annual rate of interest charged on a loan if the nominal rate is 5.4% pr annum, compounded quarterly.

LOL, I dont get it:P - Nov 5th 2008, 09:02 AMmasters
- Nov 5th 2008, 09:29 AMjonah
- Nov 5th 2008, 09:49 AMmathceleb

Go here and enter 5.4 in the "Enter Nominal Interest Rate" box.

Effective Annual Yield Rate of Interest

It will show you each line of math to get the answer of 5.51% effective rate of interest. Let me know if you have questions. - Nov 6th 2008, 03:37 AMHallsofIvy
Will he have that available on a test?