this is a question provided by my tutor.
So no initial amount invested has been provided but this would be for 1 year.
The formula provided for the calculation of interest is the following:
AER = (1+periodic rate)n-1
n = number of compounding periods in the year
Does that help? The answer provided is below yet when I input into calculator i get a different answer
Thank you. the formula is explained as I already know but entering that on my calculator still provides the incorrect answer. maybe the mode is incorrect.