Chapter 4: Nominal and Effective Interest Rates
– Interest is 1% per month – “Interest is “12.5% per year, compounded monthly” • Thus, one must “decipher” the various ways to state interest and to calculate. EGR2302-Engineering Economics Al Akhawayn University 6 4.1 Two Common Forms of Quotation • Two types of interest quotation – 1. Quotation using a Nominal Interest ... ................
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