Question
Find the effective rate which is equivalent to nominal rate of 10% p.a. compounded monthly.
Answers
oobleck
you might start here ...
www.calculatorsoup.com/calculators/financial/nominal-interest-rate-calculator.php
www.calculatorsoup.com/calculators/financial/nominal-interest-rate-calculator.php
Kaur
I got 0.104
Kaur
@oobleck plse see is it right or wrong
mathhelper
let the effective annual rate be i
so
(1+i)^1 = (1 + .10/12)^12
1+i = 1.1047...
i = .1047 or ..... % per annum
so
(1+i)^1 = (1 + .10/12)^12
1+i = 1.1047...
i = .1047 or ..... % per annum