Question

Can someone find the monthly compound interest for this -

P=$12,433
R =1.25% p.a
N = 1 year

Answer 1

0.104%

Explanation:

Let r be the monthly interest rate

With annual rate, at the end of the year, amount is

12433(1 + 0.0125) = 12,588.4125

If compounded monthly

12433[(1+r)^12] = 12433(1+0.0125)

(1+r)^12 = 1.0125

(1+r) = 1.001035746

r = 0.001035746

Monthly interest rate = 0.10357r6%

0.104% (correct to 3sf)