Effective Annual Interest Rate is a part of the VCE Further Maths topic Recursion and Financial Modelling. It is a part of the subtopic Compound Interest Investments and Loans. Effective Annual Rate is the return on a savings account or any interest-paying investment. It is calculated when the effects of compounding are taken into account.
How Do I Calculate the Effective Interest Rate?
Watch the following video to learn how to calculate the effective interest rate. It introduces the formula to use, and how to use it!
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