An Effective Method for Teaching and Understanding ...
Many textbooks only indicate the following formula for converting between interest rates. (7) ... your effective interest cost per year is 8.16% per year. (b) Given monthly payments, you need the effective rate per month for your annuity formula. (c) Step 1 8.00% per year compounded semi-annually ( 2 = 4.00% per half year (effective) Step 2 (1 + 0.04)1/6 - 1 = 0.00655819794 = 0.655819794% ... ................
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