Asked by lijm
I only need my problem to be checked.
What is the effective annual rate of an account offering .09% monthly interest compounded monthly?
Since it is compounded monthly, my m is equal to 12. My rate is 0.09.
reff= (1+0.09/12)^12-1
= 9.38%
What is the effective annual rate of an account offering .09% monthly interest compounded monthly?
Since it is compounded monthly, my m is equal to 12. My rate is 0.09.
reff= (1+0.09/12)^12-1
= 9.38%
Answers
Answered by
Reiny
ok,
but your wording of the question is faulty
It should have said:
What is the effective annual rate of an account offering 9% per annum compounded monthly?
but your wording of the question is faulty
It should have said:
What is the effective annual rate of an account offering 9% per annum compounded monthly?