If the Nominal Rate of Interest Paid on a Savings

question 195

Short Answer

If the nominal rate of interest paid on a savings account is 2% compounded monthly, what is the effective rate of interest?

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Definitions:

Measures of Dispersion

Mathematical computations that represent the diversity or range within a collection of numerical values.

Range

The difference between the maximum value and minimum value in a data set.

Central Tendency

Statistics referring to the middle or typical value within a dataset, represented by measures such as mean, median, and mode.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers together and dividing by the count of those numbers.