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An investment offers a rate of 5% quarter. What is the actual rate you are being...

An investment offers a rate of 5% quarter. What is the actual rate you are being offered?
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Answer #1

Actual Annual rate that is offered : (+i)^n -

               = (1+.05)^4 -1

               = (1.05)^4 -1

               = 1.2155-1

                = .2155 or 21.55%

                   

**4 quarters in a year

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