An account invested in a money market fund grew from $73,334.75 to $73,630.70 in a month....
An account invested in a money market fund grew from $73,334.75 to $73,630.70 in a month. What was the interest rate to the nearest tenth? What was the interest rate?
Homework Answers
Answer:
Initial Amount P=$73334.75
Final Amount F=$73630.70
So Interest Rate per Month =(F-P)/P=(73630.70-73334.75)/73334.75=0.404% per month
Nominal Annual Interest rate =12*0.404%=4.84%
Effective annual interest rate=(1+o.404%)^12-1=4.95%
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An account invested in a money market fund grew from $73,334.75 to $73,630.70 in a month....
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