mwandhu

Given Effective Rate of Return of 18%,what is the nominal rate if compounding is quarterly?

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3+ months ago by mwandhu
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Jewels Vern

R^4 = 1.18

R = 1.042246635 which is 4.2246635% rounded to 4.225%

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burst4x

nominal rate is 16.8987%

x = 4 * (4)sqrt(1.18)-4 = 16.8987%

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