+598 A prinicipal of $2000 compounded monthly amounts to $2800 in 7.25 years. What is the nominal annual rate of interest?
Any help would be greatly appreciated.
A prinicipal of $2000 compounded monthly amounts to $2800 in 7.25 years. What is the nominal annual rate of interest
This is very simple. You have to find out the interest rate, r. You have to use logs to do that. At any rate, if you did it right, you should get: 4.65% nominal rate compounded monthly=4.75% effective annual rate.
