SOLUTION: PLEASE HELP Find the effective rate corresponding to the following nominal rate of 6% compounded monthly. Round to the nearest hundredth.

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Question 954158: PLEASE HELP
Find the effective rate corresponding to the following nominal rate of 6% compounded monthly.
Round to the nearest hundredth.

Answer by Alan3354(69443) About Me  (Show Source):
You can put this solution on YOUR website!
Find the effective rate corresponding to the following nominal rate of 6% compounded monthly.
Round to the nearest hundredth.
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If you mean 6% per year:
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(1 + 0.06/12)^12 = 1.005^12 = 1.0617
--> 6.17%