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)

kExample 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)?

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