SOLUTION: What is the effective rate of 9% compounded monthly?

Algebra.Com
Question 1154914: What is the effective rate of 9% compounded monthly?
Answer by ikleyn(52784)   (Show Source): You can put this solution on YOUR website!
.

9% annual rate compounded monthly (nominal value (!) ) is equivalent to (or simply IS) the yearly effective growing factor of


     = 1.0938


which is effective 9.38% annual rate.

------------

See the lesson
    - Problems on discretely compound
and find there other similar solved problem to wide your horizon.



RELATED QUESTIONS

1.) What rate (%) compounded quarterly is equivalent to 6% compounded semi-annually? a. (answered by jim_thompson5910)
What interest rate compounded monthly will yield an effective interest rate of... (answered by ikleyn)
Find the effective annual interest rate of an account containing $1500 which is... (answered by robertb)
What is the effective rate for an interest rate of 12% compounded... (answered by ikleyn)
What is the effective annual rate of nominal of 4% compounded... (answered by Theo)
What is the effective interest rate of $76,000 CD at 4% year, compounded... (answered by rfer)
What is the effective annual rate of investment that pays 6% for 5 yrs compounded... (answered by Boreal)
What nominal rate of​ interest, compounded​ monthly, corresponds to an... (answered by jorel1380)
What nominal rate of​ interest, compounded​ monthly, corresponds to an... (answered by addingup)