Post by LaurenceCould someone tell me which produces the highest return?
6.1% compounded monthly or
8% compounded annually.
The latter (assuming that the 6.1% is the per-month rate * 12, i.e. the
"APR" in monthly-payment jargon).
The annual rate for an APR R compounded monthly is:
((1 + R/100/12)^12 - 1)*100
So an APR of 6.1 percent represents a true annual rate of about 6.27
percent.
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