Answer to Question #193102 in Financial Math for Barent

Question #193102

If the nominal interest rate per year is 16,5% per annum, compounded at the end of every second month, then the effective interest rate is

1. 18,00%.

2. 16,18%.

3. 14,53%.

4. 16,68%.

5. 17,68%.

Expert's answer

"r=(1+i\/n)^n-1=(1+0.165\/6)^6-1=0.1768=17.68\\ \\%"

Answer: 5. "17.68\\ \\%"

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