Question

In making an application, Julia was informed that her money would yield at a rate of 1.5% per month in the compound interest regime. To compare with applications she has done earlier, she needs to know what the annual interest rate equivalent to the monthly interest rate offered by the bank. Check the alternative that presents the rate sought by Julia:

Alternative 1: 15%.


Alternative 2: 18.62%.


Alternative 3: 19.56%.


Alternative 4: 20.25%.


Alternative 5: 21.48%.

Answer 1

The correct option on Interest rate annual equivalent to 1.5% per month is alternative 3: 19.56% .

o Compound interest? of applied values, in this modality the value of the rate of interest is levied on the upstream of the last period, so the so-called interest rates occurs. The formula used in these cases is as follows:

m = c. [Tex] (1+i)^{n} [/text]

as presented by the question of the question, there is a one Compound interest situation, where Julia knows that the rate of interest of the operation is 1.5% per month . She wants to know what is the equivalent rate for a year, so you have to:

[text] (1+i)^{n} [/text] < /P>

[Tex] (1+0.015)^{12} [/Tex]

[Tex] (1.015)^{12} [/Tex]

1.1956

1.1956- 1

0.1956

0.1956 x 100 = 19.56% < /P>

Thus, it can be stated that the interest rate value corresponding to 1.5% per month for the period of 1 Year is from 19.56%