Find the effective rate of interest for 5.75% compounded quarterly.

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These are really easy once you know how to use the formula for compounded interest. The effective annual rate of interest for 5.75% compounded quarterly uses this formula: Annual Effective Rate = [(1 + r/t)^(t)] - 1 Where r = the interest rate in decimal form (.0575 in your example) t = number of times per year interest is earned (in your example compounded quarterly means interest is earned every quarter or every 3 months.  So in total, interest is earned 4 times per year so t=4, agree?) Just plug these into the formula and you will get the effective annual rate, but it will be in decimal form.  If you want to show it as a percentage, just multiply your answer by 100. Hope this helps