What is the equivalent simple interest (yield) for an investment of 7.5% compounded quarterly? Round to 2 decimal places
The annual simple interest is ?%
I tried many times and I can't seem to figure it out. Its an online problem so I am beginning to think that its a computer error. Can you guys help me?
The annual simple interest is ?%
I tried many times and I can't seem to figure it out. Its an online problem so I am beginning to think that its a computer error. Can you guys help me?
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Over one year:
A = P(1 + 0.075/4)^(4)(1) = P(1.0771)
A/P = 1.0771 or 7.71%
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A = P(1 + 0.075/4)^(4)(1) = P(1.0771)
A/P = 1.0771 or 7.71%
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(1+.075/4)^4=7.71359%