LMAO, annual doesnt mean its paid out once a year. Do you even have a bank account? An annual interest rate of 10% means that over one year the compounded interest, paid out in whatever format (eg. monthly or weekly), is 10%. It in no way implies a once yearly interest payment. As an extra example, if your bank account has a nominal interest rate of 12% paid out monthly, then you get a 1% interest payment each month. the annual interest is still 12%. if you have a real interest rate of 12% compounded monthly then you get monthly interest payment of i% such that (1+i)^12=1.12. Now what I am wondering is how often interest is added to your account, which could be, but is not necessairly once a year. |
