equivalent interest rates教学教案.pptVIP

Chapter 9 Compound Interest: Further Topics and Applications;Equivalent interest rate: Different nominal interest rates that produce the same maturity value of a given principal after 1 year.;term=1 year p=$100 j1=8% compounded quarterly m=4 n=4 i=j/m=2% per quarter s=p(1+i)n =$100(1+2%)4 =$108.24;Calculate a nominal interest rate so that it is equivalent to another nominal rate;EQUIVALENT PERIODIC RATE