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15-6-1
Interest Conversion
15-6 Interest Conversion
Interest Conversion lets you calculate the effective or nominal interest rate for interest that is
compounded multiple times during a year.
Interest Conversion Fields
The following fields appear on the Interest Conversion calculation page.
Field Description
N Number of times interest is compounded per year
EFF Effective interest rate (as a percent)
APR Nominal interest rate (as a percent)
k
Example 1
What is the annual effective interest rate ([EFF]) on a certificate that offers a nominal interest
rate of 3% ([APR]), compounded quarterly (N = 4)?