Determine the effective annual yield for $1 invested for 1 year at a 7.3% compounded quarterly
(Round to the nearest hundredth)

- The problem is that I don't have a TI84 so I don't know how to do it without the calculator. Please help

Question

Determine the effective annual yield for $1 invested for 1 year at a 7.3% compounded quarterly 
(Round to the nearest hundredth) 

- The problem is that I don't have a TI84 so I don't know how to do it without the calculator. Please help

mathmale · Answer

There are several online calculators.  Try out wolframalpha.com.  Others that are less technical are also available.  

Figure out how much interest would be earned under the given terms:  compounding quarterly, interest rate 7.38%, and time 1 year.

Then we'll move on to the "effective annual rate."