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Hello all,

I posted a similar question earlier, though I forgot to mention a key fact, and it is this, the starting value is unkown.

 

Annual interest rate of 5 per cent applied monthly (each month, balance goes up by 5/12 percent). By how much does your balance increase each year?

It may help you if I tell you the answer is 5.116%

Steps appreciated, thanks.

 Nov 29, 2021
 #1
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Again:

 

(1 + .05/12)12   - 1   = .0511618978817336085             or    5.116 %   rise in your blance at the end of a year.

 Nov 29, 2021

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