ATAR Notes: Forum

VCE Stuff => VCE Mathematics => VCE Mathematics/Science/Technology => VCE Subjects + Help => VCE General & Further Mathematics => Topic started by: English101 on November 01, 2018, 09:21:00 pm

Title: Effective interest rate to nomial
Post by: English101 on November 01, 2018, 09:21:00 pm
Hey,

How do you go from effective interest rate to nomial interest rate.

Cheers.
Title: Re: Effective interest rate to nomial
Post by: AngelWings on November 01, 2018, 10:08:43 pm
So I never did this, since this was introduced after I did Further, but just found the formula for nominal to effective interest rate here.
My assumption would be that you could essentially do the opposite operations and receive the effective interest rate from the nominal rate.
This would mean that the equation would be: r = m*[(ia + 1)(1/m) - 1]
where everything is defined as the link above. 
Title: Re: Effective interest rate to nomial
Post by: plato on November 01, 2018, 10:17:29 pm
Quote from: AngelWings on November 01, 2018, 10:08:43 pm
So I never did this, since this was introduced after I did Further, but just found the formula for nominal to effective interest rate here.
My assumption would be that you could essentially do the opposite operations and receive the effective interest rate from the nominal rate.
This would mean that the equation would be: r = m*[(ia + 1)(1/m) - 1]
where everything is defined as the link above. 
The formula is on the VCAA formula sheet issued in both exams.
Title: Re: Effective interest rate to nomial
Post by: vceme on November 01, 2018, 10:17:45 pm
8 --> 5 --> 1 on cas