Notice how we're expanding by taking the annually into smaller segments. My problem with the EAR is when we're doing the opposite. For example; We're taking Bimonthly into monthly or semiannually into annually. I think we just change the m into 1/x in the denomiator and exponent, right? As in going from Monthly into bimonthly it would be (1+r/(1/x))^1/x-1 => simplified into (1+r*x)^1/x-1, is that correct?
The EIR Calculator is an online tool that determines the actual interest rate associated with an investment or loan by considering the nominal rate and the compounding periods.
Easy way to remember is multiply both occasion with numbers will produce a year. Ie .For monthly let's take one month * occasion (13) = 1 month *12 =12 month = 1year. Annually (12 month) *1 = 1 year Daily(1day)* 365=365 days =1year. Quarterly(3months)*4 = 12 month =1 year. Seme annually(6months)*2 =12 months= 1year. Bimonthly (2months)* 6 =12 months =1 year.(In some places bimonthly can be used as twice a month hence in that sense bimonthly(2week)*24 =12 months=1 year.
no bro actually i think that he is right coz he is considering it for an year , 6 will be the answer when we consider it for monthly period bro i think so but it may be or may not be@@spg1643
Interesting you point that out because it is an ambiguous phrase. It can actually mean both occurring every two months *or* occurring twice a month. In this case, I took it as the latter.
More useful than my teacher honestly.
Thankyou, after watching this I can now easily worked out answer for my course activities
Thanks alot ❤
Thank you very much ❤
awesome video! thanks!
Hi why there is a -1 in the formula, I am not understanding it Can someone help
To end up with a percentage, as we are looking for a rate.
Notice how we're expanding by taking the annually into smaller segments. My problem with the EAR is when we're doing the opposite. For example; We're taking Bimonthly into monthly or semiannually into annually. I think we just change the m into 1/x in the denomiator and exponent, right? As in going from Monthly into bimonthly it would be (1+r/(1/x))^1/x-1 => simplified into (1+r*x)^1/x-1, is that correct?
I discuss that in this video: ruclips.net/video/A2HLQIQBv64/видео.html
Than you bro🤟
Thank you so much
Thanks for explaining the m
What is the EIR Calculator?
@@minakh4814 What calculator are you using?
The EIR Calculator is an online tool that determines the actual interest rate associated with an investment or loan by considering the nominal rate and the compounding periods.
bimonthly is 24? or 6?
You are correct bro bimonthly 6 only... He is mistaken..
Easy way to remember is multiply both occasion with numbers will produce a year.
Ie .For monthly let's take one month * occasion (13) = 1 month *12 =12 month = 1year.
Annually (12 month) *1 = 1 year
Daily(1day)* 365=365 days =1year.
Quarterly(3months)*4 = 12 month =1 year.
Seme annually(6months)*2 =12 months= 1year.
Bimonthly (2months)* 6 =12 months =1 year.(In some places bimonthly can be used as twice a month hence in that sense bimonthly(2week)*24 =12 months=1 year.
no bro actually i think that he is right coz he is considering it for an year , 6 will be the answer when we consider it for monthly period bro i think so but it may be or may not be@@spg1643
thanks u great!
Thanks my teacher put annually on the HW, when we did monthly in class. I should have know Annually is 1😂😂
Thanks a lot!
24 is for semi-monthly
6 is for bi-monthly cause it is compounding every two months
Rarely are those frequencies used. Bimonthly is also used to denote every 2 weeks.
Thanks sor
Thankyou so much sir
What does re stands for?
r_e stands for effect rate
Good luck for exam
I hope you can help me, this is a hard problem...
What rate, compounded once every 3 years, is equivalent to 9% effective rate?
Hi Kyle, can you check my attempt here: biology-forums.com/index.php?topic=1993835.0
29.5029
@@factopedia366 how?
Thanks :)
I think the value for 24 is for biweekly and not bimonthly, bimonthly should only be using 6 as its value for compounding.
Interesting you point that out because it is an ambiguous phrase. It can actually mean both occurring every two months *or* occurring twice a month. In this case, I took it as the latter.
My book says the equation ERI={(1+R)^n - 1}100
Is this correct
It gives out to different answers
It's
E = { (1+r/100) - 1 } × 100
How to calculate effective annual interest rate on a flat rate?
saved my fucking life bro
How to solve it on normal calculator?
Once you calculate what is within the parentheses, you multiply it in itself 12 times, then subtract 1. It's not convenient at all...
impressive
shouldnt quarter be 3 ?
Quarter is 4 darling .
It’s in the name . Quart which you can relate to quad which means 4 .
Hiii abhishek
Hii 😂😂
Hello 😂
@@abhishekdesai3964 lmao
Thank you so much