interest

No it is not right. 2/52 = 0.038 (not 0.038%) Therefore 1 + R = (1 + 0.038)^52

but 2 is in % right ? so when we divide it is .02/52 What is the effective annual rate of interest of 2.1% that is compounded every 3 months? Also in this question then it must be r = 2.1/4 =.525 1+R = 1.525^ 4 R= 4.408 but answer says 8.67

2% is the same as 0.02, not 0.02%. What I wrote before is correct. Do watch my free lectures on interest :-)

i did sir. i cant seem to understand the nominal to effective rate nominal rate is when interest rate is expressed annually but calculated less than a year right What is the effective annual rate of interest of 2.1% that is compounded every 3 months? Also in this question then it must be r = 2.1/4 =.525 1+R = 1.525^ 4 R= 4.408 but answer says 8.67

If the interest is 2.1% charged every three months, then 1 + R = 1.021^4 Again, have you watched my free lectures on interest?