Hellow guys, Welcome to my website, and you are watching Converting Nominal Interest Rates to Different Compounding Periods. and this vIdeo is uploaded by Study Force at 2023-01-27T18:24:43-08:00. We are pramote this video only for entertainment and educational perpose only. So, I hop you like our website.
| Name | Converting Nominal Interest Rates to Different Compounding Periods |
| Video Uploader | Video From Study Force |
| Upload Date | This Video Uploaded At 27-01-2023 21:24:43 |
| Video Discription | ✔ https://StudyForce.com ✔ https://Biology-Forums.com ✔ Ask questions here: https://Biology-Forums.com/index.php?board=33.0 Follow us: ▶ Facebook: https://facebook.com/StudyForcePS/ ▶ Instagram: https://instagram.com/biologyforums/ ▶ Twitter: https://twitter.com/studyforceps Sometimes the compounding period of the interest on a loan will not match the when deposits are expected to be made. For example, you are expected to make monthly mortgage payments, but the interest is compounded semi-annually. In cases like these, we must convert the nominal rate to an equivalent rate that matches the timing of the cash flows. Q1. Find the equivalent rate of interest for a loan rated at 8% compounded semi-annually to interest compounded annually. Note: When finding the equivalent annual rate, it is called the effective annual rate. Q2. Find the equivalent rate of interest for a loan rated at 3.5% compounded monthly to interest compounded semi-annually. |
| Category | Education |
| Tags | Converting Mortgage Rates | effective annual rate | Nominal Rate to a different compounding period | Calculating General Annuities | Calculating EAR | Changing from semi-annually to annually | Business Mathematics | Calculate EAR |
