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Interest compounded monthly - added at the end of each month)
Base amount: $18,384.00Interest Rate: 6.91%Effective Annual Rate: 7.13%Calculation period: 22 years
I'm still confused with the formula. How would I calculate the future value for this question? Your numbers were wrong at the end and didn't get the same numbers when i calculated it.
Let me repeat usig a simple formula
may be there was a slight change by using a long way
Annual Compound Interest Formula:
A = P(1+r/n)^nt
using 3 decimal places
use effective rate of 4.553 per year
I am sorry for the previous effective rate but the table above is very correct
you don't have to add 1 for the rate in the formula since it is 6.91%?
Effective Annual Rate = (1+(r/n))n − 1
U MUST add because it helps us to find the annual effective rate
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