document.write( "Question 1083410: What nominal rate of interest, compounded monthly, corresponds to an effective rate of 3.5%? \n" ); document.write( "

Algebra.Com's Answer #697515 by jorel1380(3719) $\"\"$ $\"About$

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To correspond to an effective rate of 3.5% yearly, the following equation must be made solved for r:
\n" ); document.write( "(1+r/12)^12=1.035
\n" ); document.write( "Then:
\n" ); document.write( "ln (1+r/12)^12=ln 1.035
\n" ); document.write( "12 ln(1+r/12)=0.03440142671733239614402827482834
\n" ); document.write( "ln(1+r/12)=0.00286678555977769967866902290236
\n" ); document.write( "1+r/12=e^0.00286678555977769967866902290236=1.0028708987190766276170092557721
\n" ); document.write( "r=0.03445078 or 3.445078% interest rate. ☺☺☺☺ \n" ); document.write( "

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