The correct answer is $54196.92.
Step by step =
6900x1.0825^26 = 54196.92.
How do you calculate the annual interest rate?
The formula and calculations are as follows:
- Effective annual interest rate = (1 + (nominal rate / number of compounding periods)) ^ (number of compounding periods) - 1.
- For investment A, this would be: 10.47% = (1 + (10% / 12)) ^ 12 - 1.
- And for investment B, it would be: 10.36% = (1 + (10.1% / 2)) ^ 2 - 1.
Is the interest rate annual or monthly?
The interest rate is the amount a lender charges a borrower and is a percentage of the principal of the amount loaned. The interest rate on a loan is typically noted on an annual basis known as the annual percentage rate (APR).
Learn more about How do you calculate the annual interest rate? here: https://brainly.com/question/2699966
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