tell me please in simple words what it means "at the nominal annual rete compounded monthly"???

Question

tell me please in simple words what it means "at the nominal annual rete compounded monthly"???

Answer 1

It would be the apr, for instance 24%, compounded monthly means that the apr will be divided into 12 monthly charges, in this case 2%.

Answer 2

You might have better luck with this question if you ask in the mathematics section or business/finance.
The nominal rate compounded monthly means you take the "annual rate" and divide it by twelve to get the monthly rate, and each month you compound by that rate.
Example: you borrow $1,000.00 at 12% annual rate. So each month, one percent is applied to the loan amount( 12%/12 = 1%). One percent of 1,000.00 is 10, so at the end of the first month, you owe 1010.00
The next month, one percent (.01) of 1010.00 = (1010)*(1.01) = 1020.10.
If you don't want to do all that multiplying, and you have a percent key on your calculator, you can get the same results this way: Take the previous amount owed and then punch +,1, and % keys and the new amount will appear. You can confirm this with the results above.
Hope this helps.

Answer 3

at the nominal annual rate compounded monthly
1. at the nominal=the flat rate; apparently not a lot, which is why they call it "nominal."

2. annual rate: You will pay this rate for the year. Annual means yearly.

3. compounded monthly: means every month the rate will be multiplied by the whatever the rate is.

An example helps.
You borrow $1000 at the rate of 8% per month.
1000 multiplied by .008= $8.00.
So now for March you owe the original $1000 plus the $8 interest.
April comes now you multiple the $1008 by 8% or .008 = $8.064. You now owe $1016.064.
Do you see how the interested is multiplied from one month to the next? That's what compounded means. You end up paying interest on the interest.

Hope this helps.