Please describe this formula which is about calculating interest rates at different compounding frequencies m R...
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Please describe this formula which is about calculating interest rates at different compounding frequencies m R₁ = (1 + )" - 1 m To calculate equivalent rates between continuous compounding and another frequency we get: Roo mln (1+ ¹(1 Rm m e Roo Calculate continuous rate for given discrete rate =(1+ Rm 31. m Rm = m(eRoo/m - 1) Calculate discrete rate for given continuous rate Please describe this formula which is about calculating interest rates at different compounding frequencies m R₁ = (1 + )" - 1 m To calculate equivalent rates between continuous compounding and another frequency we get: Roo mln (1+ ¹(1 Rm m e Roo Calculate continuous rate for given discrete rate =(1+ Rm 31. m Rm = m(eRoo/m - 1) Calculate discrete rate for given continuous rate
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This formula is used to calculate the effective annual interest ra... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
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