Type the formula that converts a Canadian mortgage quote of 4.80 % (semi-annual) to the equivalent monthly rate.
Type the formula that converts a Canadian mortgage quote of 4.80 % (semi-annual) to the equivalent monthly rate.
Answer
=(1+0.048/2)^(1/6)-1
Half the quote, plus one, to the sixth root, minus one: 0.003961. Six months of this compound to exactly one half-year at 2.4 %.
Interest Act (R.S.C. 1985, c. I-15) s. 6 — laws-lois.justice.gc.ca, observed 2026-09-17 (verified-facts §2.8); Bigel and OpenStax mortgage examples are US monthly-compounding shapes — shape only; original scenario