A monthly interest rate of 1 is a compounded annual rate of

A monthly interest rate of 1% is a compounded annual rate of:
a. 12.00%
b. 10.00%
c. 14.11%
d. 6.00%

Solution

Ans: 12.00%

Explanation:

Annual rate = 1% * 12 = 12%

1% per month compound annually means annual rate is 12%