First, we calculate for the effective interest given the
annual interest and the condition that it is compounded monthly.
<span> Ieff = (1
+ 0.0925/12)^12 – 1 = 0.09652</span>
The equation that would best represent the value of
Grace’s money after x years is equal to,
<span>
An = ($1000)(1.09652)^x</span>
<span>Where x is the number of years</span>
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