What are the nominal and effective interest rates per year for an interest charge of 4% every 6 months? What effective interest rate per year is equivalent to a nominal rate of 12% per year compounded semiannually? What effective interest rate per year is equivalent to a nominal rate of 16% per year compounded quarterly? You put your money in a passbook savings account in which the interest rate is 4.2% per year compounded daily. What is the effective annual percentage rate? How much money would be accumulated in 8 years if an investor deposits $2, 500 now at a nominal interest rate of 8% per year compounded semiannually? If a person made a lump-sum deposit 12 years ago which has accumulated to $9, 500 now, how much was the original deposit if the interest rate received was a nominal 4% per year compounded monthly