Compare Investments

You are presented with two competing investments. The first is compounded monthly with a nominal interest rate of 9.75%. The other pays at an effective interest rate of 10%. Which investment has a better interest rate?

Variable	Enter
Clear
Method	Periodic
Nominal%	9.75
Cmpnds/Yr	12

Compute Effective% by scrolling to its variable and choosing Calculate from the menu.

The first investment's effective rate is 10.20%. It has the better interest rate.