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(1+0.09/n)^n -1 , the expression gives the effective annual interest rate on a bank account that pays an annual interest rate of 9% , compounded n times per year. which of the following expression shows the change in the effective rate on the bank account if the Interest is compounded monthly rather than if the Interest is compounded quarterly ? $(1+0.09/n)^n -1$ , the expression gives the effective annual interest rate on a bank account that pays an annual interest rate of $9\%$ , compounded $n$ times per year. Which of the following expressions, shows the change in the effective rate on the bank account if the Interest is compounded monthly rather than if the Interest is compounded quarterly ?

user711349
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  • Do you have trouble finding the interest rate when compounded monthly? – Toby Mak Oct 05 '19 at 13:18
  • is effective rate a difference, ratio, equivalent rate, or interest over the difference between length of time interest accrued ? –  Oct 06 '19 at 15:25

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