Use the given interest rate i per compounding period to find

Use the given interest rate i per compounding period to find r the annual rate

1. 0.395% per month

2. 0.012% per day

3. 0.9% per quarter

4. 0.175% per month

5. 2.1 % per half year

6. 1.4% per quarter

We use the formula,

Annual Rate = Interest rate for one period x no of period in a year(compounding period)

1. Given, Interest Rate i = 0.395% per month

So Annual Rate r = Interest rate i x 12 = 0.395 x 12 = 4.74% annually

r = 4.74%

2. Interest Rate i = 0.012% per day

So Annual Rate r = Interest Rate i x 365 = 0.012 x 365 = 4.38% annually

r = 4.38%

3. Interest Rate i = 0.9 per quarter

So Annual Rate r = Interest Rate i x 4 = 0.9 x 4 = 3.6% annually

r = 3.6%

4. Interest Rate i = 0.175% per month

So Annual Rate r = Interest Rate i x 12 = 0.175 x 12 = 2.1% annually

r = 2.1%

5. Interest Rate i = 2.1% per half year

So Annual Rate r = Interest Rate i x 2 = 2.1 x 2 = 4.2% annually

r = 4.2%

6. Interest Rate i = 1.4% per quarter

So Annual Rate r = Interest Rate i x 4 = 1.4 x 4 = 5.6% annually

r = 5.6%