Periodical compound interest rate equivalent to an annual compound interest rate formula (ID: 119) [Edit]
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