Article View: aus.mathematics
Article #80Re: Interest rates
From: Barb Knox
Date: Sun, 26 Oct 2008 20:23
Date: Sun, 26 Oct 2008 20:23
28 lines
1670 bytes
1670 bytes
In article <6mjat6Fh43agU1@mid.individual.net>,
"Laurence" <eireneus@xyahoox.com.au> wrote:
> Could someone tell me which produces the highest return?
>
> 6.1% compounded monthly or
> 8% compounded annually.
The latter (assuming that the 6.1% is the per-month rate * 12, i.e. the
"APR" in monthly-payment jargon).
The annual rate for an APR R compounded monthly is:
((1 + R/100/12)^12 - 1)*100
So an APR of 6.1 percent represents a true annual rate of about 6.27
percent.
> Laurence
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X-Google-Thread: 10d67e,2c9dbb37a19bb225 X-Google-Attributes: gid10d67e,domainid0,public,usenet X-Google-Language: ENGLISH,ASCII-7-bit Path: arc1-ca.pugleaf.net!g2news2.google.com!news2.google.com!news.glorb.com!newsfeeds.ihug.co.nz!lust.ihug.co.nz!ihug.co.nz!see From: Barb Knox <see@sig.below> Newsgroups: aus.mathematics Subject: Re: Interest rates Date: Mon, 27 Oct 2008 09:23:18 +1300 Organization: I'm not unemployed; I'm a consultant Lines: 28 Message-ID: <see-4CE52E.09231727102008@lust.ihug.co.nz> References: <6mjat6Fh43agU1@mid.individual.net> NNTP-Posting-Host: 118-93-94-153.dsl.dyn.ihug.co.nz X-Trace: lust.ihug.co.nz 1225052598 5017 118.93.94.153 (26 Oct 2008 20:23:18 GMT) X-Complaints-To: abuse@ihug.co.nz NNTP-Posting-Date: Sun, 26 Oct 2008 20:23:18 +0000 (UTC) User-Agent: MT-NewsWatcher/3.5.2 (PPC Mac OS X)