Periodic to Annual Rates

Use this calculation to convert a given periodic rate to the corresponding nominal or effective annual rates.

Input

• effective periodic rate

• compounding frequency

Results

• nominal annual rate

• effective annual rate

Examples

•	A credit card company indicates that interest is calculated at 1.5 % per month. How much is the effective annual rate? Input Effective periodic rate: 1.5 %   Interest is compounded: monthly       Results Nominal annual rate : 18.00 %   Effective annual rate : 19.56 % Answer: 19.56 %.

 

Related topic

Nominal annual rate

Effective Rates

Equivalent Rates