How to calculate effective annual interest rate?

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.

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.

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