A bank CD would give you 3.19% APR with monthly compounding what’s the interest rate compounding...

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Question

A bank CD would give you 3.19% APR with monthly compounding what’s the interest rate compounding period for this CD

Answer 1

Answer #1

MONTHLY COMPOUNDING, IT MEANS IT HAS 12 PERIODS IN A YEAR

SO INTEREST RATE COMPOUNDING PERIOD = 12 (THUMBS UP PLEASE)

NOTE : IF WE WANT TO CALCULATE INTEREST RATE PER COMPOUNDING PERIOD, THEN IT WILL BE =

3.19%/12 = 0.2658% =0.27%

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Answer 2

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