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g If I make a one-time deposit now of $1500 for 4 years, with an 8% nominal interest rate, compounded annually, what will be the effective interest rate?

Respuesta :

Answer:

8%

Explanation:

Effective interest rate = (1 + i / n) ^ n - 1

                                    = (1+ 8%/1)^1 - 1 = 8%

i: nominal interest rate

n: number of compounding periods per year

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