Nominal rate and compounding frequency Effective rate (%)
? compounded monthly 10.5
what i did was
i = j/m > 0.105 = j / 12 which = 1.26
f = ( 1 + i ) ^ m F = ( 1 + 0.0126 ) ^ 12 - 1 = 16.21%
the book is giving the answer of 10.03%
Nominal rate and compounding frequency Effective rate (%)
? compounded monthly 10.5
what i did was
i = j/m > 0.105 = j / 12 which = 1.26
f = ( 1 + i ) ^ m F = ( 1 + 0.0126 ) ^ 12 - 1 = 16.21%
the book is giving the answer of 10.03%