Asked by Amrita Nijjer on Jul 08, 2024

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What semiannually compounded rate is equivalent to 8.5% compounded quarterly?

Compounded Quarterly

The process of calculating and adding interest to the principal sum of an investment or loan on a quarterly basis, thus increasing the amount on which subsequent interest is calculated.

Semiannually Compounded

Interest calculation method where the interest earned is added to the principal twice per year, effectively growing the investment more quickly than simple interest.

- Assess the analogous interest rates across a range of compounding frequencies.

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PU

## Learning Objectives

- Assess the analogous interest rates across a range of compounding frequencies.