Interest rate on account that results in interest earnings

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Reference no: EM131584408

An account with compounding every 13 weeks, four times yearly (quarterly), results in interest earnings of 1,056.00 on a deposit of 16,000 for the first year.

a. What is the quarterly interest rate on the account that results in these interest earnings? Report to 4 digits after the decimal point in percentage format.

b. If the bank hosting the account decided to change the compounding period to twice a year, what semiannual interest rate would be declared for the account if the bank wanted to keep yearly interest earning to depositors the same? Report to 4 digits after decimal point in percentage format.

Reference no: EM131584408

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