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What is the effective annual rate of 6% compounded quarterly? A. 6.00% B. [1 + (.06/4)]4 -1 C. (1.06) x 4 - 1 D. 1/(1.06)4

What is the effective annual rate of 6% compounded quarterly?

6.00%

[1 + (.06/4)]4 -1

(1.06) x 4 - 1

1/(1.06)4 - 1

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