# Maths

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Determine the effective annual yield (annual percentage yield) for \$1
invested for 1 year at 8.5% compounded monthly.

• Maths -

let that rate be i

(1+i)^1 = (1+.085/12)^12
1+i = 1.08839
i = .08839

so the effective annual rate is 8.839%

• Maths -

Thanks a lot

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