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7-6 Interest Rate Conversion
The procedures in this section describe how to convert between the annual percentage rate
and effective interest rate.
u Formula
APR : annual percentage rate (%)
EFF : effective interest rate (%)
n : number of compoundings
Press 5 (CNVT) from the Financial 1 screen to display the following input screen for interest
rate conversion.
5 (CNVT)
n .................................. number of compoundings
I % .................................interest rate
After confi guring the parameters, use one of the function menus noted below to perform the
corresponding calculation.
• {' EFF } … {converts annual percentage rate to effective interest rate}
• {' APR } … {converts effective interest rate to annual percent rate}
• An error (Ma ERROR) occurs if parameters are not confi gured correctly.
Use the following function menu to maneuver between calculation result screens.
• { REPT } … {parameter input screen}
E
FF =
n
APR/100
1+
–1 × 100
n
E
FF =
n
APR/100
1+
–1 × 100
n
A
PR =
100
EFF
1+
–1 × n ×100
1
n
A
PR =
100
EFF
1+
–1 × n ×100
1
n
7-6-1
Interest Rate Conversion