what annual nominal rate compounded monthly has the same annual percentage yield as 8% compounded continuously

Question

amistre64 · Answer

read over something

amistre64 · Answer

e^(rt) = 1+x/12

that might be better

amistre64 · Answer

e^(.08) = 1+x/12

e^(.08) - 1 = x/12

12e^(.08) - 12 = x

anonymous · Answer

i do not understand hwo to do this on my graphing calculator can you please help me

dumbcow · Answer

he forgot to raise it to 12th power since you are comparing annual rates
$$(1+\frac{x}{12})^{12} = e^{.08}$$
$$1+\frac{x}{12} = e^{.08/12}$$
$$x = 12(e^{.08/12}-1)$$

dumbcow · Answer

your calculator has an "e" button, then input the exponent ".08/12" in parenthesis

anonymous · Answer

is thee answer .080267

dumbcow · Answer

yes

anonymous · Answer

thank you soooooooooooooo much foryour help

dumbcow · Answer

yw