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Your investments are currently placed in an account earnings 7% interest per ye…

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Wize University Introduction to Finance Textbook > Time Value of Money

Effective Annual Rate

3 Activities

Your investments are currently placed in an account earnings 7% interest per year. Your investment advisor has just approached you to offer you a new account that effectively earns 2% more than your current account. What is the quoted rate of this new account if the return compounds semi-annually?

Round your final answer to 2 decimal places. Enter your answer as a percentage but omit the symbol. For example, enter 7.44 for 7.44%.

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