dont understand this compound interest question

can some1 guide me through this

Find the effective rate of interest.

11.75% compounded monthly

Printable View

- Nov 18th 2010, 05:21 PMmath321compound interest
dont understand this compound interest question

can some1 guide me through this

Find the effective rate of interest.

11.75% compounded monthly - Nov 18th 2010, 06:46 PMRobb
The amount is stated in a nominal yearly rate, which is compounded 12 times a year..

The effective monthly rate is simply;

So assuming you wanted the annual effective rate of interest, which is where the monthly effective rate is compounded 12 times;

- Nov 18th 2010, 06:57 PMmath321
so what am i going to solve for

what do i do from here - Nov 18th 2010, 08:08 PMWilmer