Fight Finance

(a) An effective annual rate could be called: "a yearly rate compounding per year".

(b) An APR compounding monthly could be called: "a yearly rate compounding per month".

(c) An effective monthly rate could be called: "a yearly rate compounding per month".

(d) An APR compounding daily could be called: "a yearly rate compounding per day".

(e) An effective 2-year rate could be called: "a 2-year rate compounding every 2 years".

(a) Effective rates compound once over their time period. So an effective monthly rate compounds once per month.

(b) APR's compound more than once per year. So an APR compounding monthly compounds 12 times per year. The exception is an APR that compounds annually (once per year) which is the same thing as an effective annual rate.

(c) To convert an effective rate to an APR, multiply the effective rate by the number of time periods in one year. So an effective monthly rate multiplied by 12 is equal to an APR compounding monthly.

(d) To convert an APR compounding monthly to an effective monthly rate, divide the APR by the number of months in one year (12).

(e) To convert an APR compounding monthly to an effective weekly rate, divide the APR by the number of weeks in one year (approximately 52).

(a) 0.0072, 0.09, 0.0002.

(b) 0.0139, 0.18, 0.0005.

(c) 0.0139, 6.2876, 0.0055.

(d) 0.015, 0.1956, 0.0005.

(e) 0.015, 0.1956, 0.006.

(a) 0.0041, 0.05, 0.0001.

(b) 0.0080, 0.1, 0.0003.

(c) 0.0083, 0.1, 0.0003.

(d) 0.0083, 2.1384, 0.0031.

(e) 0.0083, 0.1047, 0.0033.

(a) 0.1956, 0.0609, 0.1.

(b) 0.015, 0.09, 0.1.

(c) 0.1881, 0.0609, 0.1025.

(d) 0.1956, 0.0617, 0.1047.

(e) 6.2876, 0.1236, 0.1.

(a) Annualised percentage rate compounding per month.

(b) Effective monthly rate compounding per year.

(c) Annualised percentage rate compounding per year.

(d) Effective annual rate compounding per year.

(e) Annualised percentage rate compounding semi-annually.

(a) 9.7617696% is the APR compounding semi-annually ##(r_\text{apr comp 6mth})##

(b) 9.5689685% is the APR compounding monthly ##(r_\text{apr comp monthly})##

(c) 9.6454756% is the APR compounding daily ##(r_\text{apr comp daily})##

(d) 9.5310182% is the APR compounding per second ##(r_\text{apr comp per second})##

(e) 9.5310180% is the continuously compounded rate per annum ##(r_\text{cc annual})##

(a) The APR compounding monthly is 4.5% pa.

(b) The effective monthly rate is 0.3675% pa.

(c) The effective annual rate is 4.594% pa.

(d) The effective 6 month rate is 2.2712% pa.

(e) The APR compounding semi-annually is 4.5424% pa.

(a) $13,214.7887

(b) $1,268.2418

(c) $1,240

(d) $806.4516

(e) $788.4932