N is the number of compound periods in one year. For example A 250001 065 1212 8. Tap for more steps.
Thus we get an effective interest rate of 1025 since the compounding makes the CD paying 98 compounded monthly really pay 1025 interest over the course of the year.
For example A 250001 065 1212 8. The first pays 4 per year compounded monthly. A P1 r n nt where P is the principal r is the annual interest rate expressed as a decimal n is the number of times per year the interest is compounded A is the balance after t years. Your annual interest rate is 625.