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13 March, 13:11

What is th rate equivalent to an annual rate of 20% with monthly capitalization

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  1. 13 March, 13:52
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    about 21.9%

    Step-by-step explanation:

    The effective annual multiplier is ...

    (1 + r/n) ^n = (1 + 0.20/12) ^12 ≈ 1.21939

    The rate equivalent is 1 less than this:

    1.21939 - 1 = 0.21939 = 21.939%
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