SOLUTION: A bank pays 5.75% compounded monthly. What’s the effective interest rate? (solve using compound interest formula)

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Question 1127198: A bank pays 5.75% compounded monthly. What’s the effective interest rate? (solve using compound interest formula)
Answer by Boreal(15235) About Me  (Show Source):
You can put this solution on YOUR website!
(1+(.0575/12))^12=1.0590, so effective rate is 5.90%