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Home > CALC > Chapter 5 > Lesson 5.3.3 > Problem 5-133

5-133.

When banks compound interest, they often advertise an annual percentage rate. This is the annual rate of simple (uncompounded) interest that would give you the same amount of money at the end of one year. Confirm that the annual percentage rate for 6% annual interest, compounded quarterly, is 6.14% (to the nearest 0.01%). Homework Help ✎