Question 1064344
to get the effective annual rate, you do the following:

nominal interest rate is 10 percent.
that's the same as an annual interest rate of.10 when expressed as a decimal.
divide that by 12 to get a monthly interest rate of 1.0083333.....
add 1 to that to get 1.0083333333.......
raise that to the 12th power to get 1.0083333333.....^12 = 1.104713067
subtract 1 from that and multiply it by 100 to get 10.4713067 percent.


the nominal annual rate is 10 percent.
the effective annual rate is 10.4713067 percent.