Answer:
Results are below.
Explanation:
Giving the following information:
Nominal annual rate= 3.5%
First, we need to determine the nominal rate, then the real rate annual rate.
Nominal rate= i/n
Real rate= [(1+i)^n] - 1
Semiannual:
Nominal rate= 0.035/2= 0.0175
Real rate= (1.0175^2) - 1
Real rate= 0.0353 = 3.53%
Quarterly:
Nominal rate= 0.035/4= 0.0.00875
Real rate= (1.00875^4) - 1
Real rate= 0.03546 = 3.55%
Monthly:
Nominal rate= 0.035/12= 0.00292
Real rate= (1.00292^12) - 1
Real rate= 0.0356 = 3.56%
