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  • What is the equivalent simple interest (yield) for an investment of 8% compounded quarterly? Round to 2 decimal places

What is the equivalent simple interest (yield) for an investment of 8% compounded quarterly? Round to 2 decimal places

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Let;principal;amount;be;x\* compounded;quarterly,;so; t=frac14\* CI=P imes (1+fracr100)^t\*CI=x imes (1+frac8100)^frac14\* rate;for;SI;be;y,\* SI=CI-P\* x imes y imes frac14=x(1+0.08)^frac14-x\* y=4 imes (1.08)^frac14-4\* y=0.777\* so,;simple;interest;yeild;is;7.77\%.

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Deependra Verma

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