Question

after a year during which interest is compounded quarterly, an investment of $800 is worth $851. what is the effective annual yield?

Answer 1

Initial Investment p = 800
Total Value t = 851
Number of years y = 1
Nr. of Compounding periods / yr n = 4

The formula is eff_int = ( t/p ) ^ (1/y) - 1

so the result is
Effective Interest rate = 6.375% <-------ANSWER

Medal and fan thanks!

Answer 2

@aligatorman i did the problem for u!