FIND Nominal interest rate

how do u do this ? Find the nominal interest rate that is equivalent to 18%/a compounded quarterly, if interest is paid monthly?

WOh confusing What do u do?

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 I'm not really sure if your given is 18%/a convertible quarterly or 18% convertible quarterly, however, i can try to help you in both; The formula used here should be $$(1 + \frac{i^{(4)}}{4})^4 = (1 + \frac{i^{(12)}}{12})^{12}$$ Whatever it is, you are given $$i^{(4)}$$. Solve for $$i^{(12)}$$
 Does this make sense I did all the calculations following an example problem its a little hard to write it out here but I wrote P(1+0.18/4)^4=P(1+i)^12 and solved for i finding the 12th root of the left side and then subtracting 1 i=0.001478 or 1.478% then to get the nominal rate I multiplied this by 12 so 12*1.478% and got = 17.736% Therefore 17.736%/a compounded monthly is equivalent to 18%/a compounded quarterly. IS THIS CORRECT?

FIND Nominal interest rate

ANYONE KNOW IF MY PREVIOUS POSTS ANSWER IS CORRECT ANYONE???

 Quote by aisha ANYONE KNOW IF MY PREVIOUS POSTS ANSWER IS CORRECT ANYONE???
Hi there: