Effective Interest Incremental Calculator
Instructions:
Use the incremental calculator to study the individual steps in the process of solving for the Effective Rate Formula. Once you understand each step move on to the next calculator and try it yourself.
r
eff
= (1 + r/m)
m
-1
Enter your own values into the boxes or press new example for computer generated numbers of an example:
r=
m =
To use as a quiz, try to evaluate the expressions yourself and then check your answer.
Calculate:
r/m
(1+r/m)
(1+r/m)
m
r
eff
(1+r/m)
m
-1
Definitions
Calculator
Effective Interest Introduction
Chapter 5 Mathematics of Finance