Revision as of 23:48, 25 November 2023 by Admin (Created page with "Find the nominal rate of interest compounded monthly, equivalent to an effective rate of 42.95% per annum. <ul class="mw-excansopts"> <li>0.3627</li> <li>0.381</li> <li>0.395</li> <li>0.4</li> <li>0.4127</li> </ul> '''References''' {{cite web |url=https://web2.uwindsor.ca/math/hlynka/392oldtests.html |last=Hlynka |first=Myron |website=web2.uwindsor.ca | title = University of Windsor Old Tests 62-392 Theory of Interest | access-date=November 23, 2023}}")
ABy Admin
Nov 25'23
Exercise
Find the nominal rate of interest compounded monthly, equivalent to an effective rate of 42.95% per annum.
- 0.3627
- 0.381
- 0.395
- 0.4
- 0.4127
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.
ABy Admin
Nov 25'23
Solution: A
[[math]]
(1+i)=\left(1+i^{(12)} / 12\right)^{12}[[/math]]
so
[[math]]i^{(12)}=12\left[(1+i)^{1 / 12}-1\right]=12\left[(1.4295)^{1 / 12}-1\right]=.3627
[[/math]]
References
Hlynka, Myron. "University of Windsor Old Tests 62-392 Theory of Interest". web2.uwindsor.ca. Retrieved November 23, 2023.