Finance · Guided Practice

Converting Time Frequencies

4 questions with answers. Try each one before revealing the answer.

1
A credit card charges an effective rate of interest of 1.4%\displaystyle 1.4\% per month.
Calculate the annual effective rate of interest.
Give your answer as a percentage to 1 decimal place.
Video solution coming soon
2
A savings account offers an effective rate of interest of 5.2%\displaystyle 5.2\% per year.
Calculate the monthly effective rate of interest.
Give your answer as a percentage to 3 decimal places.
Video solution coming soon
3
An account offers an effective rate of interest of 2.4%\displaystyle 2.4\% per quarter.
Calculate the annual effective rate of interest.
Give your answer as a percentage to 2 decimal places.
Video solution coming soon
4
A bond offers an effective rate of interest of 3.6%\displaystyle 3.6\% per half-year.
Calculate the monthly effective rate of interest.
Give your answer as a percentage to 3 decimal places.
Video solution coming soon