
Elementary Math Fractions, Percentages, Word Problems, Equations, Inequations, Factorization, Expansion 
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July 3rd, 2018, 03:21 PM  #1 
Newbie Joined: Oct 2014 From: INDIA Posts: 2 Thanks: 0  Relationship between monthly and annually based interest rate?
My question is quite simple like if I know that the interest I have got from a bank this month is x then can I say that the annual interest rate which I will get from the bank is 12 multiplied by x. I am asking this because sometimes you don't just add up the percentage and actually you do something else like successive discounts we do x + y  xy/100. Please correct my calculation here. My bank has credited interest  51.45 on the deposited amount 28,500.81. This means that the interest I got paid for that month was  (51.45/28500.81)*100 = 0.180 % for that month. So, annual interest rate I am getting is 0.180 % * 12 = 2.166 Is my calculation correct? I am not confident about it that's why I am asking it on the forum. 
July 3rd, 2018, 06:07 PM  #2 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,597 Thanks: 1038 
Correct! 2.166% annual, compounded monthly. 

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annually, based, interest, monthly, rate, relationship 
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