Login

Welcome, Guest. Please login or register.

November 01, 2025, 10:17:17 am

Author Topic: Effective interest rate to nomial  (Read 1135 times)  Share 

0 Members and 2 Guests are viewing this topic.

English101

  • Adventurer
  • *
  • Posts: 11
  • Respect: +2
Effective interest rate to nomial
« on: November 01, 2018, 09:21:00 pm »
0
Hey,

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

Cheers.

AngelWings

  • Victorian Moderator
  • ATAR Notes Superstar
  • *****
  • Posts: 2456
  • "Angel wings, please guide me..."
  • Respect: +1425
Re: Effective interest rate to nomial
« Reply #1 on: November 01, 2018, 10:08:43 pm »
0
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. 
VCE: Psych | Eng Lang | LOTE | Methods | Further | Chem                 
Uni: Bachelor of Science (Hons) - genetics
Current: working (sporadically on AN)
VTAC Info Thread

plato

  • Victorian
  • Forum Obsessive
  • ***
  • Posts: 317
  • Respect: +11
Re: Effective interest rate to nomial
« Reply #2 on: November 01, 2018, 10:17:29 pm »
0
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.

vceme

  • Trendsetter
  • **
  • Posts: 133
  • Respect: +20
Re: Effective interest rate to nomial
« Reply #3 on: November 01, 2018, 10:17:45 pm »
0
8 --> 5 --> 1 on cas
Graduated in 2018. Top 5%.