J jasminerulez Active Member Joined Feb 21, 2013 Messages 237 Gender Undisclosed HSC N/A Mar 25, 2021 #1 if the interest rate for a loan is 6.3% p/a effective what would the equivalent nominal annual rate be compounding monthly?

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

jimmysmith560 Le Phénix Trilingue Joined Aug 22, 2019 Messages 870 Location Krak des Chevaliers Gender Male HSC 2019 Uni Grad 2022 Mar 25, 2021 #2 Do you have the answer?

jimmysmith560 Le Phénix Trilingue Joined Aug 22, 2019 Messages 870 Location Krak des Chevaliers Gender Male HSC 2019 Uni Grad 2022 Mar 25, 2021 #3 I think: i = ( 1 + ( r / m ) )^m - 1 i = ( 1+ (0.063/12)^12 - 1 i = 6.5%

Trebla Administrator Administrator Joined Feb 16, 2005 Messages 7,239 Gender Male HSC 2006 Mar 25, 2021 #4 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.

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.

C CM_Tutor Moderator Moderator Joined Mar 11, 2004 Messages 1,820 Gender Male HSC N/A Mar 27, 2021 #5 Trebla said: 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. Click to expand... Should this be equate to 6.3% (i.e. 1.063)?

Trebla said: 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. Click to expand... Should this be equate to 6.3% (i.e. 1.063)?