I have subimitted this question 3 times now but I do not think the answer you are providing is correct. C states that interest is compounding. The answers you provide do not seem to take this into account. 1. The effective annual interest rate is 15%. A) What is the effective interest rate for two years (accumulated over 2 years with interest over interest)? B) What is the effective interest rate for ten years (accumulated over 10 years with interest over interest)? C)Assume interest is compounded monthly. What is the monthly interest rate? D)What is the simple annual interest rate? E) What is the simple interest rate for 2 years? For 10 years?

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter9: Sequences, Probability And Counting Theory
Section9.4: Series And Their Notations
Problem 56SE: To get the best loan rates available, the Riches want to save enough money to place 20% down on a...
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I have subimitted this question 3 times now but I do not think the answer you are providing is correct. C states that interest is compounding. The answers you provide do not seem to take this into account.

1. The effective annual interest rate is 15%.

A) What is the effective interest rate for two years (accumulated over 2 years with interest over interest)?

B) What is the effective interest rate for ten years (accumulated over 10 years with interest over interest)?

C)Assume interest is compounded monthly. What is the monthly interest rate?

D)What is the simple annual interest rate?

E) What is the simple interest rate for 2 years? For 10 years?

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