EFFECTIVE RATE OF INTEREST FORMULA

Instructions: Use the following calculator as a series of examples. perform the operation yourself and then check your answer by pressing the "=" key. If your answers do not match, check your work first. If you still do not understand refer to the definitions or incremental calculator page to review.
r eff = (1 + r/m)m -1
Enter your own values into the boxes or press new example for computer generated numbers for an example.

r= m =

reff
Incremental Calculator
Calculator
Effective Interest Introduction
Chapter 5 Mathematics of Finance