A savings account offers a nominal interest rate of 6% per year, capitalized quarterly basis. Calculate the effective interest rate

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Answer to a math question A savings account offers a nominal interest rate of 6% per year, capitalized quarterly basis. Calculate the effective interest rate

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i_e = \left(1 + \frac{0.06}{4}\right)^4 - 1 \approx 0.06136 \text{ or } 6.136\%

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