You wish to deposit $7,000 in an account at the Shylock Bank.The bank pays interest at a nominal annual rate of 10% compounded quarterly.What is the effective interest rate offered by Shylock?
A) 10.38%
B) 10.00%
C) 9.65%
D) 11.21%
E) 10.47%

Question

Quizplus · Accepted Answer

Effective interest rate = 11ea7fdb_fc29_e1f7_a768_b99bc9b28397_TB2902_00 - 1
Effective interest rate = 11ea7fdb_fc29_e1f8_a768_fb91e9bcc86e_TB2902_00 - 1 = 10.38%

You Wish to Deposit $7,000 in an Account at the Shylock