What is the effective annual yield rate of
5.67% compounded quarterly?
Convert to a quarterly basis
There are 4 quarters in a year
| Quarterly Interest Rate = | 0.0567 |
| 4 |
Quarterly Interest Rate = 0.014175
Set up quarterly compounding
From above, we have n = 4
Yield Rate = (1 + quarterly rate)n - 1
Yield Rate = (1 + 0.014175)4 - 1
Yield Rate = 1.0141754 - 1
Yield Rate = 1.0579170168896 - 1
Yield Rate = 0.057917016889554
Yield Rate Expressed as a percentage = 5.79%
Yield Rate Expressed as a percentage = 5.79%
Common Core State Standards In This Lesson
HSA.SSE.B.3.C
What is the Answer?
Yield Rate = 0.057917016889554
Yield Rate Expressed as a percentage = 5.79%
Yield Rate Expressed as a percentage = 5.79%
How does the Effective Annual Yield Rate Calculator work?
Free Effective Annual Yield Rate Calculator - Figures out the effective annual yield rate of interest entered by compounding daily, weekly, semi-monthly, monthly, quarterly, semi-annually, and continuously.
This calculator has 1 input.
This calculator has 1 input.
What 3 formulas are used for the Effective Annual Yield Rate Calculator?
Effective time = Interest/Number of Compounding Periods
Decimal Rate = (1 + effective time)n - 1
Percentage Rate = 100% * Decimal Rate
Decimal Rate = (1 + effective time)n - 1
Percentage Rate = 100% * Decimal Rate
What 4 concepts are covered in the Effective Annual Yield Rate Calculator?
- compound interest
- the interest you earn on principal and interest
A = (1 + r/n)nt - effective annual yield rate
- Yield rate taking compounding periods into effect
- interest
- payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate
- yield
- How much an investment returns in terms of interest rate
