Question

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

Answer 1

about 21.9%

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%