Years Purchase, single rate            
no income tax          
(quarterly in advance)          
  1- (1+r)-n        
  4[1 - (1+r)-1/4         
Amount (£)    
Interest Rate (%)        
Term (years) (n)    
           
Answer (£)    
(1+r)
(1+r)   Effective yield [r] (1+i/p)^p -1   (1+r)n
(1+r)-1/4   p = no of times int     1 - (1+r)n
1 - (1+r)-1/4   is received and    
4[1 - (1+r)-1/4    compounded         
      during the year