Find the nominal rate of interest compounded annually equivalent to 10.4% compounded monthly .
Added by Gregory W.
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The formula for EAR is: EAR = (1 + r/n)^n - 1 where r is the nominal rate and n is the number of compounding periods per year. In this case, the nominal rate is 10.4% (or 0.104) and the compounding is done monthly, so n = 12. EAR = (1 + 0.104/12)^12 - 1 EAR = Show more…
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