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