If you earn 0.5% a month in your bank account, this would be the same as earning a 6% annual interest rate with annual compounding.

Name: If you earn 0.5% a month in your bank account, this would be the same as earning a 6% annual interest rate with annual compounding.
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Question

Quizplus · Accepted Answer

Earning 0.5% monthly with compounding results in an annual rate greater than 6% due to the effect of compounding interest.

If You Earn 0