Interest Rates Over Different Time Periods and Effective Interest Rates (VCE SSCE General Mathematics): Quizzes

The quoted annual interest rate

$p = 4$

$0.5\%$

$R = 1 + \frac{r}{100 \times p}$

$R = 1.0075$

$p = 52$

Actual % increase over 1 year with compounding

$r_{eff} = [(1+\frac{r}{100n})^n-1] \times 100\%$

Lower effective rate

$1.3\%$