The annual effective rate is 5.56%. Calculate the annual nominal rate convertible quarterly. Use all decimals.

To calculate the annual nominal rate convertible quarterly (also known as the nominal interest rate compounded quarterly) from the given annual effective rate (AER), you can use the following formula: $$\[N = \left(1 + \frac{AER}{n}\right)^n - 1\]$$ Where: - N is the annual nominal rate convertible quarterly. - AER is the annual effective rate (given as 5.56% or 0.0556 in decimal form). - n is the number of compounding periods per year (in this case, quarterly compounding, so n = 4. Now, plug in the values and calculate: $$\[N = \left(1 + \frac{0.0556}{4}\right)^4 - 1\]$$ $$\[N = \left(1 + 0.0139\right)^4 - 1\]$$ $$\[N = (1.0139)^4 - 1\]$$ \[N = 1.056770 - 1\]$$ $$\[N = 0.056770\]$$ So, the annual nominal rate convertible quarterly is approximately 5.6770% when rounded to four decimal places.