SOLUTION: Need help on how to solve, Thank you. You are given a nominal rate for an account. Find the continuous growth rate that has the same APY. 5.5% nominal rate compounded monthly

Question 980286: Need help on how to solve, Thank you.
You are given a nominal rate for an account. Find the continuous growth rate that has the same APY.
5.5% nominal rate compounded monthly
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
You are given a nominal rate for an account.
Find the continuous growth rate that has the same APY.
5.5% nominal rate compounded monthly
:
Find the APY of 5.5% compounded monthly
APY = (1+)^12 - 1
APY = .0564, which is 5.64%
:
the continuous growth rate of 5.5% is about the same
e^.055 - 1 = .0565 which is 5.65%
:

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