Effective Rate of Interest Introduction amp How to Calculate

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=0L3hBSXsQvA

This math tutorial video explains effective rate of interest for compound interest, with both discrete and continuous compounding. We show our table from our compounding interest intro video, where we compounded quarterly at a particular interest rate, and we show how the effective interest rate is actually higher than the stated rate for the original compound interest problem. We give the formulas for effective rate rate of interest, whether you are compounding discretely (daily, weekly, monthly, quarterly, semiannually, annually) or compounding continuously. We also work a few examples, comparing the effective interest rates to see which one is higher/lower. This topic appears commonly in a math for business course. • 0:00 Introduction • 1:32 Effective Rate Formulas • 2:26 Example 1 • 4:32 Example 2 • Houston Math Prep Finite/Business Math Playlist: • Finite Math/Mathematics for Business • Houston Math Prep YouTube: / houstonmathprep

#############################

New on site