Estimate effective interest rates
Let's say you invested $1000 at 8% simple interest rate for 5 years. What kind of effective interest rates should you see across different compounding frequencies?
Use the following formula to estimate that rate:
(1 + Nominal Rate/Compound Freq)^Compound Freq - 1
この演習はコースの一部です
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演習の手順
- In
C8, enter the formula above with absolute cell references for the nominal rate and relative references for the compounding frequency. - Copy that formula to all compounding frequencies from
C8:C14.
