This is incorrect:

= [1 + (0.0765/2)]² - 1

= [1.03825]² - 1

= 1.077963063 - 1

= 0.077963063, or 7.80%

This is incorrect:

7.75% compounded semi-annually = (1 + 0.0375)^2 - 1 = 0.075

0.1% expense is charged semi-annually = (1 - 0.001)^2 - 1 = 0.0009

7.54% = 0.075 - 0.0009 = 0.0741

7.54%

(1 point) Pepper earns interest at a nominal rate of 7.75% compounded semi-annually. A 0.1% expense is charged semi-annually to the account immediately after the interest is earned. What annual effective yield is Pepper receiving