Answered

Get the most out of your questions with IDNLearn.com's extensive resources. Ask your questions and receive detailed and reliable answers from our experienced and knowledgeable community members.

help

You invest $1000 in an account that has an annual interest rate of 4%, compounded monthly for 12 years. What is the equivalent interest rate and how many times will the money be compounded?

Sagot :

The equivalent interest rate is 4.07%.

The money will be compounded 12 times.

What is the equivalent interest rate?

The equivalent interest rate is the actual interest rate that an account earns after accounting for number of compounding.

Effective interest rate = (1 + APR / m ) ^m - 1

M = number of compounding

(1 + 0.04/12)^12 - 1 = 4.07%

To learn more about the effective interest rate, please check: https://brainly.com/question/4064975

#SPJ1

Thank you for being part of this discussion. Keep exploring, asking questions, and sharing your insights with the community. Together, we can find the best solutions. Find reliable answers at IDNLearn.com. Thanks for stopping by, and come back for more trustworthy solutions.