An Interest Rate Is 12% When Expressed with Quarterly Compounding

question 8

Short Answer

An interest rate is 12% when expressed with quarterly compounding. What is the equivalent annual rate with semi-annual compounding? Answer as a per cent with two decimal places. _ _ _ _ _ _

---

Definitions:

Cure

The correction of a defect in goods that caused the goods to be rejected by a buyer.

Delivery

The act of transporting goods or services from a seller or provider to the recipient's location, completing a sales transaction.

Implied Warranty

A legal assumption that a product or service sold will meet basic quality and functionality standards.

Merchantability

A warranty that the goods sold meet reasonable expectations for use, including being fit for the purpose for which they are sold.