CCGPS AA 4.1.1 Example 3

Meg has a $5,000 student loan. For the next years she is paying only the interest, which accumulates at a rate of 8% per year after monthly compounding. The function can be used to find the approximate monthly interest rate of Meg’s loan, where is the number of payments made each year (12). What is the approximate monthly interest rate?
  1. Evaluate the functions for .
  2. Subtract 1 from the number inside the parentheses and convert the difference to a percent.
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