SOLUTION: find the nominal interest rate if a bank advertises that the effective interest rate on an account compounded continiously is 3.67%
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Question 77568: find the nominal interest rate if a bank advertises that the effective interest rate on an account compounded continiously is 3.67%
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
find the nominal interest rate if a bank advertises that the effective interest rate on an account compounded continiously is 3.67%
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Let invested amount be P.
1.0367P = Pe^r
1.0367=e^r
Take the natural log to get:
r=0.0360425
Nominal rate is 3.60425%
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Cheers,
Stan H.
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