Calculate the effective interest rate for the investment

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Reference no: EM132735731

Egan wanted to ensure that he had $65,000 for his child's university education. As soon as his child was born, he started saving $1,225 every 6 months in an investment fund. If he achieved his investment target on his child's 16th birthday, and he made no deposit on the child's 16th birthday, calculate the following:

Problem a. The nominal interest rate for the investment, compounded quarterly.

Problem b. Calculate the effective interest rate for this investment.

Reference no: EM132735731

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