Answer:
the effective annual rate of interest is 19.56%
Explanation:
The computation of the annual effective rate of interest is shown below:
Since the monthly rate of interest is 1.5%
So,
Annual interest is
= 1.5 % × 12 months
= 18 %
Now
Effective annual rate of interest is
= ( 1 + 0.18 ÷ 12)^12 - 1
= 0.1956
= 19.56 %
hence, the effective annual rate of interest is 19.56%
Answer:
i believe your annual rate of interest is 19.56%
Explanation:
I just answered that question
