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**** Sory****
the above calculations is quite wrong because I just see the word annual from "Effective Annual Rate is 8.10%" So, I will correct the calculation now. However, you informations are quite not clear due to your question that"what is the Annual Percentage Rate?". Now I suppose that you want to find nominal annual rate because you already have effective annual rate. Effective annual rate = (1+I)^n - 1 0.081= (1+I)^2 -1 1.081=(1+I)^2 take square root both sides 1.0397 = 1+I 0.0397 or 3.97% = I (se-mi annual) To translate the se-mi annual into annual, 3.97% is multiplied by 2 So, the answer is 7.94% |
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