1. 

   Neetu Verma Member

   chapter 10,Profit testing ,question 10.4
   in this question ,how can we say growth in month is .97%.

    

   Last edited by a moderator: Apr 1, 2009

   Neetu Verma, Apr 1, 2009

   #1
2. 

   rsmallela Member

   Conversion from effective to nominal rate
   
   i=12.3% pa is effective rate
   to convert to monthly you need i(12)/12
   which is 1.123^1/12 - 1 = 0.009713849....i.e. 0.97%
   
   Thanks,
   Raj

    

   rsmallela, Apr 2, 2009

   #2

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