To find the effective ratecorrespondingto a given nominal rate of 2% per year compounded quarterly, we need to consider the compounding frequency.Since the nominal rate is compounded quarterly.we can use the formula for quarterly compounding:Effective Rate = (1 + (Nominal Rate /Numberof Compounding Periods))^Number of Compounding Periods - 1In this case, thenominalrate is 2% per year, which means the quarterly nominal rate would be 2% divided by 4 (since there are fourquartersin a year) = 0.5% per quarter.Plugging in the values:Effective Rate = (1 + (0.5% / 100))^4 - 1EffectiveRate = (1 + 0.005)^4 - 1Effective Rate = (1.005)^4 - 1Effective Rate = 0.0202 or 2.02% (rounded to two decimal places)Therefore, the effective rate corresponding to a nominal rate of 2% per year compounded quarterly is approximately 2.02%.learn more aboutcorrespondinghere:brainly.com/question/31486164#SPJ11...

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