Determine effective interest rate corresponding

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1. A bank will return $4500 on a 10-year certificate of deposit that originally cost $125. What interest rate, compounded annually, is the bank paying?

2. Determine the effective interest rate corresponding to 4.75% per year, compounded continuously.

3. What is the effective annual interest rate if the nominal interest rate is 13%, compounded monthly?

Reference no: EM13890666

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Determine effective interest rate corresponding : A bank will return $4500 on a 10-year certificate of deposit that originally cost $125. What interest rate, compounded annually, is the bank paying? Determine the effective interest rate corresponding to 4.75% per year, compounded continuously.

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