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
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.