Question
You make quarterly deposits for 6 years (beginning one quarter from now) into an account that with an interest rate of 2.76% compounded monthly. {Hint:
You make quarterly deposits for 6 years (beginning one quarter from now) into an account that with an interest rate of 2.76% compounded monthly. {Hint: since the deposits are quarterly we need to solve for a quarterly effective interest rate.} When solving for the effective interest rate what is the nominal rate used (r) in decimal form ?
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Essentials of Economics
Authors: N. Gregory Mankiw
8th edition
1337091995, 978-1337515351, 1337515353, 978-1337091992
