Calculate the effective annual rate of interest, effective, and use the results to compare interest on loans or investments when interest is paid or charged for different compounding periods, including daily, monthly, quarterly and six-monthly.

gm-u4-t1-s1-d4

Interactive

Same nominal rate, different compounding

organiser

Fix the advertised annual rate and compare effective growth across compounding frequencies, principal, and horizon on a shared scale.

Open fullscreen →

Want a different take?

Already have one and want another angle on this point? Describe what students should notice. Requests are read and acted on.