FOLLOW THE FORMULAS GIVEN ABOVEDOWNVOTE IF YOU DONT FOLLOW THE FORMULAS III.2.Nominal Rate - Effective Rate-=[ {1+4)* - 1] x 100_j = m [( + u) = − 1] x \x 1001₂=m₂8--|(14) - |×100xWhat rate compounded monthly will yield the effective rate 19.75%?

The effective annual rate (u) is 19.75%. The compounding period (m) is 12.

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What rate compounded monthly will yield the effective rate 19.75%?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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FOLLOW THE FORMULAS GIVEN ABOVE
DOWNVOTE IF YOU DONT FOLLOW THE FORMULAS

III.
2.
Nominal Rate - Effective Rate
-=[ {1+4)* - 1] x 100
_j = m [( + u) = − 1] x \
x 100
1₂=m₂
8--|(14) - |×100
x
What rate compounded monthly will yield the effective rate 19.75%?

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