Quarterly Compounding Calculations

$f_1 = (1 + i)^4$

$f_1 = (1 + rac{i}{12})^{12}$

$f_1 = (1 + rac{i}{4})^4$ (correct)

$f_1 = (1 + rac{i}{2})^2$

1.030225 (correct)

1.15536

1.06045

1.030243

4.5%

5%

3% (correct)

6.05%

<p>Solving $1.030225 = rac{(1+r/2)^2}$</p> Signup and view all the answers

<p>$r = 2 imes r_{nominal}$</p> Signup and view all the answers

<p>0.03</p> Signup and view all the answers

<p>6.05%</p> Signup and view all the answers