Mathishard
03-30-2006, 10:52 AM
I AM HAVING A PROBLEM WITH THIS, CAN SOMEONE PLEASE SHOW ME HOW TO DO IT?
1) Effective Rate Vs. Nominal Rate
a. The Happy Savings Bank offers a nominal interest rate of 6% compounded quarterly while the Peoples Credit Union offers a nominal interest rate of 6.2% compounded semi-annually. In this situation, you are depositing (investing) your money. You are not borrowing money.
Determine the following:
1) The Effective Interest Rate for Happy Savings Bank
2) The Effective Interest Rate for Peoples Credit Union
3) Which institution gives the best deal?
1) Effective Rate Vs. Nominal Rate
a. The Happy Savings Bank offers a nominal interest rate of 6% compounded quarterly while the Peoples Credit Union offers a nominal interest rate of 6.2% compounded semi-annually. In this situation, you are depositing (investing) your money. You are not borrowing money.
Determine the following:
1) The Effective Interest Rate for Happy Savings Bank
2) The Effective Interest Rate for Peoples Credit Union
3) Which institution gives the best deal?