Compute for the Effective Annual Interest Rate (ieff/yr). 1. 10% Compounded Semi-annually = Blank 1 2. 10% Compounded 3. 10% Compounded 4. 10% Compounded 5. 10% Compounded 6. 10% Compounded Quarterly = Blank 2 Bi-monthly Blank 3 Monthly Blank 4 Weekly Blank 5 Continuously Blank 6

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.