Hello! I have a financial problem that I am having issues finding the compounding formula for. The question: Given the same annual interest rate, would you rather have a savings account that paid interest compounded on a monthly basis, or one that compounded interest on an annual basis? Perform the calculation to support your answer. -the amount for interest rates and any other amount are just made-up numbers that can be used as an example
Hello! I have a financial problem that I am having issues finding the compounding formula for. The question: Given the same annual interest rate, would you rather have a savings account that paid interest compounded on a monthly basis, or one that compounded interest on an annual basis? Perform the calculation to support your answer. -the amount for interest rates and any other amount are just made-up numbers that can be used as an example
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Hello! I have a financial problem that I am having issues finding the compounding formula for.
The question: Given the same annual interest rate, would you rather have a savings account that paid
-the amount for interest rates and any other amount are just made-up numbers that can be used as an example.
thank you for the help
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in the formula i am confused on the Interest RateCompounding PeriodsYears
and how that translates to 0.06121. is that the interest rate combined with 12 months being in 1 year?
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