Asked by Talha Munir on Jun 10, 2024
Verified
If the nominal rate of interest paid on a savings account is 2% compounded monthly, what is the effective rate of interest?
Effective Rate
The actual interest rate of an investment or loan, taking into account the compounding of interest.
- Calculate the effective annual rate from nominal interest rates with different compounding intervals.
Verified Answer
BN
Learning Objectives
- Calculate the effective annual rate from nominal interest rates with different compounding intervals.