SOLUTION: What nominal rate of interest, compounded monthly, corresponds to an effective rate of 11%?

SOLUTION: What nominal rate of interest, compounded monthly, corresponds to an effective rate of 11%?

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Question 1083668: What nominal rate of interest, compounded monthly, corresponds to an effective rate of 11%?
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
0.11 = (1+(i/n))^(n)-1
i = interest rate
n = number of compounding periods
0.11 = (1+(i/12)^12-1 = 10.48 nominal rate.
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