Converting AER to a Monthly Rate (Leaving Cert Mathematics): Revision Notes

Converting AER to a Monthly Rate

In some cases AER may need to be converted monthly or weekly. There are 12 months in a year and 52 weeks.

$$\text{Monthly Rate}=(1+\text{AER})^\tfrac{1}{12}-1$$ $$\text{Weekly Rate}=(1+\text{AER})^\tfrac{1}{52}-1$$

Example

Example