Can anyone help me with nominal annual interest rate?????

Question

use an effective annual yield of 7.1 %
What is the nominal annual interest rate?

------ % ?
That's how I have been doing it...but can't get the answer. plz help
e^0.071=1.073581
7.3581

Answer 1

It depends on how often your money is being compounded.

Answer 2

Real interest rate = Nominal rate - inflation

The effective rate is the amount of interest you receive
Interest at 4% compounded semi-annually (you can't multiply by 2 because it excluded the compounding factor) the rate would be 8.16%

The formula to calculate effective annual yield = (1 + Periodic interest rate)^m -1.
m = frequency of payments per year
Related Terms: Compounding

Answer 3

how many situations is the each year nominal fee of interest compounded? Or, as somebody else positioned it, how long is the compounding era? yet i provide you with the widely used answer: enable i = annual nominal fee of interest m = form of compounding sessions according to 12 months seeing that there is $6400 interest, the stability could be 6900 + 6400 = thirteen,3 hundred on the tip of 5 years. for this reason, 6900(a million+i/m)^(5m) = thirteen,3 hundred (a million+i/m)^(5m) = thirteen,3 hundred/6900 = 133/sixty 9 a million+i/m = (133/sixty 9)^[a million/(5m)] i/m = (133/sixty 9)^[a million/(5m)] - a million very outcome is under: **************************************... i = m*{(133/sixty 9)^[a million/(5m)] - a million} (decimal sort) i = 100m*{(133/sixty 9)^[a million/(5m)] - a million} **************************************... So, you would be able to desire to plug interior the suited fee of m as quickly as you come across it on your situation. occasion: think that interest is compounded 2 situations a 12 months. Then m=2 and that i = 200*[(133/sixty 9)^(a million/10) - a million] = thirteen.fifty seven%