answersLogoWhite

0

Suppose the monthly rate is m% and the annual is a% = 12%

Then

(1 + m/100)12 = 1 + 12/100

so that 12*ln(1+m/100) = ln(1.12) = 0.1133

then ln(1 + m/100) = 0.1133/12 = 0.009444

therefore 1 + m/100 = exp(0.009444) = 1.00949

and then m/100 = 0.00949 so that m = 100*0.00949 = 0.949%

Note: you could have used log and powers of 10 instead of ln and and exp.

User Avatar

Wiki User

12y ago

Still curious? Ask our experts.

Chat with our AI personalities

TaigaTaiga
Every great hero faces trials, and you—yes, YOU—are no exception!
Chat with Taiga
RafaRafa
There's no fun in playing it safe. Why not try something a little unhinged?
Chat with Rafa
RossRoss
Every question is just a happy little opportunity.
Chat with Ross

Add your answer:

Earn +20 pts
Q: What is the monthly interest rate if the annual is 12 percent?
Write your answer...
Submit
Still have questions?
magnify glass
imp