Cryptocurrency Q&A
What is the effective monthly interest rate?
What is the effective monthly interest rate?
SsamziegangSerenade
Fri Oct 25 2024
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7 answers
1628
I'm trying to understand the financial aspect of a loan or an investment. Specifically, I want to know the effective monthly interest rate, which would help me calculate the actual cost or return on a monthly basis.
7 answers
BlockchainBaron
Sun Oct 27 2024
Calculation involves converting a nominal interest rate into an effective interest rate.
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Elena
Sat Oct 26 2024
Over the course of a year, the principal amount grows due to the monthly addition of interest.
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Andrea
Sat Oct 26 2024
When interest is compounded monthly, the rate is divided by 12 to find the monthly rate.
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WhisperInfinity
Sat Oct 26 2024
After one year, the initial capital is multiplied by the factor (1 + 0.005)12.
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GinsengGlory
Sat Oct 26 2024
This factor approximates to 1.0617, indicating an effective interest rate of 6.17%.
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