Find the effective interest rate. Round to two decimal places when needed.
Rate: $10 \%$ Compounded: Semiannually
The effective rate is $\%$

Answer

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Answer

$ \boxed{The effective interest rate is 10.25\%} $

Steps

Step 1 ：Calculate the effective interest rate using the formula: $ (1 + \frac{Nominal Rate}{Number of Compounding Periods})^{Number of Compounding Periods} - 1 $

Step 2 ：Plug in the values: $ (1 + \frac{0.10}{2})^{2} - 1 $

Step 3 ：Simplify the expression: $ (1 + 0.05)^{2} - 1 $

Step 4 ：Evaluate the expression: $ 1.1025 - 1 $

Step 5 ：Find the effective interest rate: $ 0.1025 $

Step 6 ：Convert to percentage and round to two decimal places: $ 10.25\% $

Step 7 ：$ \boxed{The effective interest rate is 10.25\%} $

Find the effective interest rate. Round to two decimal places when needed.Rate: $10 \%$ Compounded: SemiannuallyThe effective rate is $\%$

Answer

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Find the effective interest rate. Round to two decimal places when needed.
Rate: $10 \%$ Compounded: Semiannually
The effective rate is $\%$