Effective rate formula finance
Example Effective Annual Interest Rate Calculation: Suppose you have an investment account with a "Stated Rate" of 7% compounded monthly then the Effective ↑ CPT and the effective rate will be displayed. Example 1. Suppose we want to find the effective rate of an investment at 9% compounded quarterly. Formula: Effective and Nominal Interest and Discount Rates (Finance) Re-arranging the formula to make i(12) the subject and substituting in the numbers: 1+0.1=(1+