If the nominal interest rate is r (in decimal form) and is compounded n times per year, then the effective interest rate E (in decimal form) is given by For continuous compounding the formula E = e^r - 1 can be used. Use these formulas to find the effective interest rate (in percent form rounded to the nearest hundredth) for the given r and type of compounding.

Transcribed Image Text:

7\n E = (1 + )" − 1. - n