Periodical compound interest rate equivalent to an annual compound interest rate formula
Description of the Periodical compound interest rate equivalent to an annual compound interest rate formula
Formula for the calculation of a periodical compound interest rate which is equivalent to an annual compound interest rate
Formula
\[ t = \left( 1+i\right)^\frac{1}{m}-1 \ \]
Symbols
\(i\ \)
Annual interest rate
\(m\ \)
Number of discount periods per year