dont understand this compound interest question
can some1 guide me through this
Find the effective rate of interest.
11.75% compounded monthly
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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;
so what am i going to solve for
what do i do from here
Originally Posted by math321 so what am i going to solve for
what do i do from here Nothing more to do: Robb gave you the answer: 11.75 cpd monthly = 12.4039 effective
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