Convert 3% simple monthly rate into simple annual rate

Question

Question

business finance

Answer 1

Answer #1

annual rate = monthly rate*12 = 3*12 = 36%

EAR = [(1 +stated rate/no. of compounding periods) ^no. of compounding periods - 1]* 100

? = ((1+36/(12*100))^12-1)*100

Effective Annual Rate% = 42.58

Answer 2

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