NZ Level 6 (NZC) Level 1 (NCEA)

Effective Interest Rates

Neil invested $\$3500$$3500 at $4.3%$4.3% p.a. compounded daily.

a

Find the amount of interest earned in a year.

Write your answer to the nearest cent.

b

Find the effective annual interest rate as a percentage.

Round your answer to two decimal places.

Easy

Approx 4 minutes

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Apply everyday compounding rates

Apply numeric reasoning in solving problems