Answer:
6.13%
Step-by-step explanation:
We are given an investment of $8000 deposited for 4 years. We have to find the effective annual yield for which we will need the interest rate and the compounding period.
Annual interest rate compunded quarterly, r = 6% = 0.06
Compounding period is quarterly, n = 4
Annual EffectiveYield = [tex] (1+\frac{r}{n})^{n}-1\\=(1+\frac{0.06 }{4})^{4}-1[/tex]
= 0.0613
The annual effective yield is 6.13%
