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AveGali [126]
3 years ago
8

Periodic rate can be computed using this formula

Mathematics
1 answer:
Damm [24]3 years ago
3 0

Answer & Explanation:

First, divide the nominal rate by the number of compounding periods. The result is the periodic rate. Now add this number to 1 and take the sum by the power of the number of compounding interest rates. Subtract 1 from the product to get the effective interest rate.

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