John asks for interest to be added half-yearly to his account. The bank offers AER of 4% find the equivalent of half-yearly rate. I'm really stuck on this any help will be greatly appreciated thank you.
find square root of 1.04
(1+0.04)=(1+i)>2, the answer is i=square root of 1.04-1= 0.0198
If it is half yearly then (1.04)^(1/2) if it is monthly then (1.04)^(1/12)
^ = to the power of
Id use my calculator if I was you! Hope this helps:).........