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 per month.
Calculate the annual effective rate of interest.
Give your answer as a percentage to 1 decimal place.
Calculate the annual effective rate of interest.
Give your answer as a percentage to 1 decimal place.
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Answer
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2
A savings account offers an effective rate of interest of per year.
Calculate the monthly effective rate of interest.
Give your answer as a percentage to 3 decimal places.
Calculate the monthly effective rate of interest.
Give your answer as a percentage to 3 decimal places.
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Answer
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3
An account offers an effective rate of interest of per quarter.
Calculate the annual effective rate of interest.
Give your answer as a percentage to 2 decimal places.
Calculate the annual effective rate of interest.
Give your answer as a percentage to 2 decimal places.
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Answer
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4
A bond offers an effective rate of interest of per half-year.
Calculate the monthly effective rate of interest.
Give your answer as a percentage to 3 decimal places.
Calculate the monthly effective rate of interest.
Give your answer as a percentage to 3 decimal places.
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Answer
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