Respuesta :
The effective interest rate is greater by 0.71 percentage points as compared to the nominal interest rates.
How to compute the effective interest rate?
Given,
[tex](r)[/tex]Nominal Interest rate =13.62%
[tex](m)[/tex] compounding period =quarterly, that is 4.
The formula of the effective interest rate will be used:
[tex]\begin{aligned}\text{Effective Interest Rate}&=(1+\frac{r}{m})^m-1\\&=(1+\frac{0.1362}{4})^4-1\\&=(1.10566)^4-1\\&=0.1433\;\text{or}\;14.33\%\end{aligned}[/tex]
Now, the difference of the effective interest rate and nominal interest rate will be determined to know the exceeding percentage:
[tex]\begin{aligned}\text{Difference Percentage}&=\text{Effective Interest rate - Nominal Interest rate}\\&=0.1433-0.1362\\&=0.71\end{aligned}[/tex]
Therefore, option d. 0.71 percentage points is correct.
Learn more about the effective interest rates, refer to the link:
https://brainly.com/question/14270693
