Explore BrainMass

Explore BrainMass

    Effective annual rate

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    If the stated rate of interest is 12% and it is compounded monthly, what is the effective annual interest rate?

    © BrainMass Inc. brainmass.com June 3, 2020, 8:10 pm ad1c9bdddf
    https://brainmass.com/business/interest-rates/126470

    Solution Preview

    If the compounding is different than yearly, then the effective interest rate will be greater ...

    Solution Summary

    The solution explains how to calculate the effective annual rate

    $2.19

    ADVERTISEMENT