Section 1 - UW-Madison Department of Mathematics
effective annual rate, or . EAR. ( Key idea. The nominal rate i for a period during which no compounding is done is given by where r is the nominal annual rate and n is the number of times interest is compounded per year. (Example C. For an account earning 9% interest compounded monthly, what is the nominal rate i for a one-month period? Solution ................
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