Thursday

October 30, 2014

October 30, 2014

Posted by **Viktor** on Thursday, March 27, 2008 at 6:12pm.

If you solve the problem the two are equal; how can you derive 12.68% compounded yearly from 12% per year compounded monthly?

- Investing -
**Reiny**, Thursday, March 27, 2008 at 9:17pmLet the rate compounded yearly be i

then (1+i)^1 = (1+.12/12)^12

1+i = 1.01^12

1+i = 1.126825

i = .1268..

so the annual rate is 12.68%

- Investing -
**Viktor**, Thursday, March 27, 2008 at 10:09pmThank you very much, that was most helpful.

**Answer this Question**

**Related Questions**

calculus - the monthly payment that amortizes a loan of A dollars in t yr when ...

simple interest and compund interest. - 1) What is the final amount when $3000 ...

Maths - Get Rich Quick Investments LTD offers 2 investment schemes. Scheme 1: ...

math - Suppose that you have $12,500 to invest over a 4 year period. There are ...

math - Each year, Cathy invests $1,200 in her account. The account pays an ...

Math - If interest is compounded monthly at 8% per year for 10 years, explain ...

Algebra - Please Help. How long, to the nearest tenth of a year, will it take $...

Compound interest - Hello My teacher skipped over this and I have no clue how to...

Math - you deposit $1000 at 3% per year.what is the balance at the end of one ...

Math - you deposit $1000 at 3% per year.what is the balance at the end of one ...