SOLUTION: What is the solution to this problem. Find the effective annual yield of an account paying 4.8% compounded monthly. Round to the nearest hundredth of an percent.

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Question 1002392: What is the solution to this problem. Find the effective annual yield of an account paying 4.8% compounded monthly. Round to the nearest hundredth of an percent.
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
pick a number like 100
P=100(1+0.048/12)^12, for 1 year
P=100(1.004)^12
P=104.907, or 4.91%