Assumptions and Calulated Values Bank Rate Information: Colin's Bank Account Rate (compounded monthly) Monthly Bank Rate...

Question

Question

Assumptions and Calulated Values Bank Rate Information: Colins Bank Account Rate (compounded monthly) Monthly Bank Rate Effe

Answer 1

Answer #1

Monthly Bank Rate=Annual Bank Rate/12=6%/12=0.50%

Effective Annual Interest Rate=(1+monthly interest rate)^12-1=(1+0.5%)^12-1=6.167781%

Answer 2

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