Equivalent Rates
The Equivalent Rates calculation is used to find the nominal annual interest rate compounded n times a year equivalent to a given nominal rate compounded m times per year.
Two nominal rates with different compounding frequencies are equivalent if they yield the same amount of interest per year (and hence, at the end of any period of time).
Input
| • nominal annual rate for the given rate |
| • compounding frequency for the given rate |
| • compounding frequency for the equivalent rate |
Results
| • equivalent nominal annual rate |
| • equivalent periodic rate |
Example
| • | A
bank offers 14.75 % compounded annually.
Answer: 13.8377%. |
Related topics
| Nominal annual rate |
| Compound interest |
| Effective Rates |
| Periodic to Annual Rates |