what effective annual rate is equivalent to a nominal rate of 14% assuming monthly compounding?
Formula is given as follows:
Given:
r = Effective Annual Rate (to be calculated)
i = the nominal rate = 0.14
n = number of compounding periods per year = 12
Substituting in the Formula, we get:
= 14.93 %
So,
Answer is:
14.93 %
what effective annual rate is equivalent to a nominal rate of 14% assuming monthly compounding?
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