Calculate the effective rate (APY) of interest for 1 year. (Do not nearest hundredth percent.)

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter4: Time Value Of Money
Section: Chapter Questions
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Principal: $18,000
Interest rate: 20%
Compounded quarterly
Calculate the effective rate (APY) of interest for 1 year. (Do not round intermediate calculations. Round your final answer to the
nearest hundredth percent.)
Effective rate
I%
Transcribed Image Text:Principal: $18,000 Interest rate: 20% Compounded quarterly Calculate the effective rate (APY) of interest for 1 year. (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.) Effective rate I%
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