SOLUTION: Given the rate per compounding period, find r, the annual rate. 0.45%per month R=%

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Question 1182410: Given the rate per compounding period, find r, the annual rate.
0.45%per month
R=%

Answer by ikleyn(52781)   (Show Source): You can put this solution on YOUR website!
.

To find the nominal annual rate in this problem, multiply the given rate per month by 12 months.


Remember, that doing this way, you obtain only "nominal" annual rate - not the actual annual rate of the account.



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