Answer:
6.14%
Explanation:
The offered investment has a nominal rate (N) of 6% compounded quarterly (n=4 times a year). The effective rate of return (R) is obtained by:
[tex]R = (1+\frac{N}{n})^n-1\\R = (1+\frac{0.06}{4})^4-1\\R=0.0614=6.14\%[/tex]
The effective rate of return that you will earn from this investment is 6.14%.
*Note that the amount invested is not relevant when determining the effective rate of return, which means that the rate would be the same for any amount.
