Find the Effective Rate Corresponding to the Given Nominal Rate

question 49

Essay

Find the effective rate corresponding to the given nominal rate. Round your answers to the nearest hundredth.
14% / year compounded semiannually __________%
5% / year compounded quarterly __________%

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Definitions:

Systematic Desensitization

Form of exposure therapy used to treat phobias and anxiety disorders by exposing a person to the feared object or situation through a stimulus hierarchy.

Flooding

A psychological treatment method where an individual is exposed to a large quantity of an undesirable stimulus in order to help them overcome their anxiety or fear.

Exposure Therapy

Counterconditioning technique in which a therapist seeks to treat a client’s fear or anxiety by presenting the feared object or situation with the idea that the person will eventually get used to it.

Client-Centered Therapy

A form of psychotherapy developed by Carl Rogers that emphasizes providing a supportive emotional environment for clients.