Question: THIS QUESTION IS NOT RIGHT BECAUSE IT NEEDS TO be the simple compouidng period which is a quarter in this case. The comment below is

THIS QUESTION IS NOT RIGHT BECAUSE IT NEEDS TO be the simple compouidng period which is a quarter in this case. The comment below is what is needed to be done, can someone clarify what the actual answer is!

What simple interest rate, compounded quarterly, is equivalent to a 8.70% effective interest rate? (Note: present your answer in percentage form with 2 decimal places) show steps, be clear, will rate Expert Answer Anonymous answered this 2,682 answers Was this answer helpful? Use the below formula to calculate the simple interest rate compounded quarterly: E = (1+r)" - 1 When, e = 8.7 and n = 4, then r will be: 0.087 = (1+r/4)4 - 1 1.087 = (1+r/4) This upon solving gives r = 8.43% approximately Thus, answer = 8.43 Hide comments (1) Comments Anonymous posted 1 week ago you defined the nominal annual rate, simple interest is ref to the simple compounding period which is a quarter in this case. pls adjust solution for ratings thx

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