Asked by Kaur

Find the effective rate which is equivalent to nominal rate of 10% p.a. compounded monthly.
Answered by oobleck
you might start here ...

www.calculatorsoup.com/calculators/financial/nominal-interest-rate-calculator.php
Answered by Kaur
I got 0.104
Answered by Kaur
@oobleck plse see is it right or wrong
Answered by 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
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