1. How is the interest rate per period determined from the annual interest rate? 2. Explain how...

Question:

1. How is the interest rate per period determined from the annual interest rate?
2. Explain how works?
Compound Interest
Compound interest (or compounding interest) is interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan. Thought to have originated in 17th century Italy, compound...