Find the effective interest rate , using the formula below, on a loan with a nominal rate of 17% p.a compounding monthly.
formula is E=(1+r)^n-1
+118724 (1+r)=(1+0.17/12)^12
$${\left({\mathtt{1}}{\mathtt{\,\small\textbf+\,}}{\frac{{\mathtt{0.17}}}{{\mathtt{12}}}}\right)}^{{\mathtt{12}}}{\mathtt{\,-\,}}{\mathtt{1}} = {\mathtt{0.183\: \!891\: \!728\: \!240\: \!085\: \!4}}$$
Effective rate is 18.39% per annum (correct to 2 dp)
+118724 (1+r)=(1+0.17/12)^12
$${\left({\mathtt{1}}{\mathtt{\,\small\textbf+\,}}{\frac{{\mathtt{0.17}}}{{\mathtt{12}}}}\right)}^{{\mathtt{12}}}{\mathtt{\,-\,}}{\mathtt{1}} = {\mathtt{0.183\: \!891\: \!728\: \!240\: \!085\: \!4}}$$
Effective rate is 18.39% per annum (correct to 2 dp)
