Question

an amount of 35000 with the rate of interest 7% per annum ,it is compound on a monthly basis then tell the effective rate of interest

a. 7.22%
b. 7.64%
c. 7.0%
d. 7.5%​

Answer 1

Answer:

Using the calculator, your periods are years, nominal rate is 7%, compounding is monthly, 12 times per yearly period, and your number of Commonly the effective interest rate is in terms of yearly periods and stated such as the effective annual rate, effective annual interest rate, annual equivalent rate (AER), or annual percentage yield (APY), however, the formula is in terms of periods which can be any time unit you want.

thanks