We xalculate the effective rate by this formula:

R = (1 + I/n)^n - 1

where

r = effective rate, I = nominal interest rate, and n= number of compounding periods,

You have not mentioned the nominal or effective interest rate in this question. One of these interest rates are needed to solve this question

R = (1 + I/n)^n - 1

where

r = effective rate, I = nominal interest rate, and n= number of compounding periods,

You have not mentioned the nominal or effective interest rate in this question. One of these interest rates are needed to solve this question