Calculate the equivalent interest rate (to the nearest 0.01%)

Equivalent Interest

An interest rate or yield that makes two financial instruments with different payment structures equally valuable.

Nearest 0.01%

A method of rounding numbers to the closest hundredth of a percent.

Calculate and appreciate the equivalent interest rates applicable to varied compounding cycles.

Verified Answer

Final Answer :

9.20% compounded annually

Learning Objectives

Calculate and appreciate the equivalent interest rates applicable to varied compounding cycles.