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It is 8.16%

Q: What is the effective rate for a nominal rate of 8 with semiannual compounding?

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Equivalent RatesThe Equivalent Rates calculation is used to find the nominal annual interest rate compounded n times a year equivalent to a given nominal rate compounded m times per year.Two nominal rates with different compounding frequencies are equivalent if they yield the same amount of interest per year (and hence, at the end of any period of time).Input• nominal annual rate for the given rate• compounding frequency for the given rate• compounding frequency for the equivalent rateResults• equivalent nominal annual rate• equivalent periodic rateExample•A bank offers 14.75 % compounded annually.What would be the equivalent rate compounded monthly?InputGiven nominal annual rate:14.75 %Compounding frequency for given rate:annuallyCompounding frequency for equivalent rate:monthlyResultEquivalent nominal annual rate:13.8377 %Answer: 13.8377%.

Corresponding compounding is the interest rate on loan or the financial product restated from nominal interest rate as an interest rate with an annual compound interest.

17%

0.9938% per month, when compounded is equivalent to 12.6% annually.

That depends on what you DO know. You might consider asking again, being more specific about what information you have. For example, if you know the amount of interest, the principal, and the length of time, you can readily calculate the effective interest rate even if you don't know the nominal value or how often it's compounded.

Related questions

The nominal rate of return adjusted for more frequent calculations (compounding) than once per annum.

A nominal interest rate is an interest rate that does not factor in the rate on inflation. Nominal interest rate could also refer to an interest rate that does not adjust for the full effect of compounding.

Nominal interest rate is also defined as a stated interest rate. This interest works according to the simple interest and does not take into account the compounding periods. Effective interest rate is the one which caters the compounding periods during a payment plan. It is used to compare the annual interest between loans with different compounding periods like week, month, year etc. In general stated or nominal interest rate is less than the effective one. And the later depicts the true picture of financial payments.

A nominal interest rate is an interest rate that does not factor in the rate on inflation. Nominal interest rate could also refer to an interest rate that does not adjust for the full effect of compounding.

Equivalent RatesThe Equivalent Rates calculation is used to find the nominal annual interest rate compounded n times a year equivalent to a given nominal rate compounded m times per year.Two nominal rates with different compounding frequencies are equivalent if they yield the same amount of interest per year (and hence, at the end of any period of time).Input• nominal annual rate for the given rate• compounding frequency for the given rate• compounding frequency for the equivalent rateResults• equivalent nominal annual rate• equivalent periodic rateExample•A bank offers 14.75 % compounded annually.What would be the equivalent rate compounded monthly?InputGiven nominal annual rate:14.75 %Compounding frequency for given rate:annuallyCompounding frequency for equivalent rate:monthlyResultEquivalent nominal annual rate:13.8377 %Answer: 13.8377%.

The first responder posted this response:$1,280.08====================================The next responder posted this response:Assuming the 5% interest rate is the nominal annual rate, the first step is to calculate the effective interest rate.ieffective = (1+r/m)m - 1where r is the nominal rate (.05) and m is the compounding periods per year (semiannual = 2 compoundings per year).ieffective = (1+.05/2)2 - 1 = .0506Simply use this effective rate to solveFuture Value = Present Value * (1+i)nwhere i is the effective interest rate and n is the number of years.F = 1000*(1+.0506)5 = $1280.08

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Yes

Corresponding compounding is the interest rate on loan or the financial product restated from nominal interest rate as an interest rate with an annual compound interest.

17%

Nominal InterestA nominal interest rate is the interest rate that does not compensate for inflation. This is used in relation to "effective interest rate" or "real interest rate."" Real Interest Rate = Nominal Interest Rate - Inflation Rate " Improvement suggested by Palash Bagchi.

Nominal effective exchange rate (NEER) and Real effective exchange rate (REER)