My Math Forum Relationship between monthly and annually based interest rate?
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 July 3rd, 2018, 04:21 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, 07:07 PM #2 Math Team   Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 13,489 Thanks: 950 Correct! 2.166% annual, compounded monthly.

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