Asked by Yoselin Nevarez on May 11, 2024
Verified
The amount owed on a promissory note for $950 after two years and five months is $1082.11. What monthly compounded nominal rate of interest was charged on the debt?
Monthly Compounded
A reiteration indicating that the interest accrues on a monthly basis, thereby increasing the investment or loan amount through compounding.
Promissory Note
A written and signed promise to pay a specified sum of money to a particular person or bearer on a specified date.
- Determine the nominal interest rate based on the frequency of compounding.
Verified Answer
FA
Learning Objectives
- Determine the nominal interest rate based on the frequency of compounding.