Calculate the effective interest rate for each nominal annual interest rate and compounding frequency shown. Round your answer to 2 decimal places. a. 12% Quarterly compounding b. 7% Semiannual compounding C. 14% Continuous compounding Upload

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Effective Interest Rate

The term interest rate can be defined as the amount that is charged by the lender as a percentage on the principal amount. Interest rate which is charged annually is known as annual percentage rate.