Here n = 12*12 =144
r = rate of interest = ?
Present value = 1000$
Future value = $3050
FV = PV(1+r)^n
3050 = 1000(1+r)^144
3.05 = (1+r)^144
3.05^1/144 = (1+r)
1.007774 = 1+r
r= 0.007774
i.e 0.78%
Problem #3: If, in 12 years, $1000 increased to $3050, what is the effective monthly rate,...
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