Thread: Math Problem
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Old 08-01-2005, 11:09 AM
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Default Re: Math Problem

If the rate is 3.15% and is paid out each month, divide 3.15% by 12 and then multiply by that to find the interest earned for the month.

If 3.15% is the APR, however, you need to use the actual rate to calculate interest each month. The compounding is what leads to the APR.

Looks like we posted around the same time.
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