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padilas [110]
3 years ago
8

What is th rate equivalent to an annual rate of 20% with monthly capitalization​

Mathematics
1 answer:
Strike441 [17]3 years ago
6 0

Answer:

  about 21.9%

Step-by-step explanation:

The effective annual multiplier is ...

  (1 +r/n)^n = (1 +0.20/12)^12 ≈ 1.21939

The rate equivalent is 1 less than this:

  1.21939 -1 = 0.21939 = 21.939%

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