If the nominal interest rate per year is 16,5% per annum, ompounded at the end of every se ond month, then the ee tive interest rate is
[1] 18,00%.
[2] 16,18%.
[3] 14,53%.
[4] 16,68%.
[5] 17,68%
i=nominal interest rate
n=compounding months
r=effective interest rate
"r=(1+i\/n)^n-1=(1+0.165\/6)^6-1=0.1768=17.68\\ \\%"
Answer: 5. "17.68\\ \\%"
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