Math (1 Viewer)

jasminerulez

Active Member
Joined
Feb 21, 2013
Messages
237
Gender
Undisclosed
HSC
N/A
if the interest rate for a loan is 6.3% p/a effective what would the equivalent nominal annual rate be compounding monthly?
 

Trebla

Administrator
Administrator
Joined
Feb 16, 2005
Messages
8,114
Gender
Male
HSC
2006
If the interest of 100r% is compounded monthly then after 12 months each dollar grows by



Equate this to a growth of 6.8% (i.e. 1.068) and you can then solve for r.
 

CM_Tutor

Moderator
Moderator
Joined
Mar 11, 2004
Messages
2,644
Gender
Male
HSC
N/A
If the interest of 100r% is compounded monthly then after 12 months each dollar grows by



Equate this to a growth of 6.8% (i.e. 1.068) and you can then solve for r.
Should this be equate to 6.3% (i.e. 1.063)?
 

Users Who Are Viewing This Thread (Users: 0, Guests: 1)

Top