What is the effective rate of semiannually compounded rate

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You have a savings account in which you leave the funds for one year without adding to or withdrawing from the account. Which would you rather have: a daily compounded rate of 0.035%, a weekly compounded rate of 0.305%, a monthly compounded rate of 1.25%, a quarterly compounded rate of 4.00%, a semiannually compounded rate of 8%, or an annually compounded rate of 15%?

What is the effective rate (EAR) of a daily compounded rate of 0.035%?

What is the effective rate (EAR) of a weekly compounded rate of 0.305%?

What is the effective rate (EAR) of a monthly compounded rate of 1.25%?

What is the effective rate (EAR) of a quarterly compounded rate of 4.00%

What is the effective rate (EAR) of a semiannually compounded rate of 8%?

What is the effective rate (EAR) of an annually compounded rate of 15%?

Reference no: EM131994165

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