Effective Rate problem

[neomah]

Hello,

I have a problem that I've been stuck for a while:
"What monthly compounded interest rate is equivalent to:a) 9% compounded annually? ANS: 8.65% cm
b) 9% compounded semiannually? ANS: 8.84% cm
c) 9% compounded quarterly? ANS: 8.93% cm"

It would be great if someone can clarify it to me Thank you!

I basically followed the effective rate formula and it didnt work

f=(1+0.09/1)^1 - 1
= 9%?

 

[stapel]

"What monthly compounded interest rate is equivalent to:
a) 9% compounded annually? ANS: 8.65% cm
b) 9% compounded semiannually? ANS: 8.84% cm
c) 9% compounded quarterly? ANS: 8.93% cm"

I basically followed the effective rate formula and it didnt work

f=(1+0.09/1)^1 - 1
= 9%?

What did you get when you "followed" this formula? What were your steps? Why did you plug the nine-percent into the formula in two different places? What did you leave yourself to solve for? What was the formula, and for what do the various different variables stand? Why are the interest rates given in terms of "centimeters"?

Please be complete. Thank you!