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jasminerulez

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if the interest rate for a loan is 6.3% p/a effective what would the equivalent nominal annual rate be compounding monthly?
 

Trebla

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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

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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)?
 

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