<PRE><B>Question 177263</B>
Find the effective yield, to the nearest tenth of a percent, of an investment at 7.5% compounded monthly.
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Let the investment be P dollars.
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A(t) = P(1 + (0.075/12))^(12*1)

A(t) = P(1.00625)^12
A(t) = P(1.0776..)
A(t) = P + 0.0776..P
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effective yield is 0.0776 = 7.76%
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Cheers,
Stan H.</PRE>