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Question by  danduralpeshmavjibhai (14)

How to calculate effective annual interest rate?

 
+7

Answer by  Clement (1453)

Given the nominal rate i and the number of corresponding periods per year n, the effective annual interest rate can be calculated as r = (1 + i/n)^n - 1 where ^ denotes the power operation.

 
+5

Answer by  keven (20)

Effective annual interest rate can be quickly calculated by taking the know interest and multiplying it by the number of times it compounded.

 
+5

Answer by  oker (34)

Let i be the nominal rate, n the number of division of in each year. Then the rate yearly is (1+i/n)^n-1 You can change the unit according to you needs

 
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