Annual interest rate of 10 per cent applied monthly (each month, balance goes up by 10/12 percent). By how much does your balance increase each year?

Steps appreciated, thanks.

HoldMyBeer Nov 28, 2021

#1**+1 **

(1+ .10/12)^{12} = 1.104713 Your balance will go up by 'balance' * .104713

Your new balance at the end of a year will be ' original balance' * 1.104713

Guest Nov 28, 2021

#2**0 **

Awesome thanks, I had trouble typing it into the calculator, but that notation works.

HoldMyBeer
Nov 28, 2021