7-6-1

Interest Rate Conversion

7-6 Interest Rate Conversion

The procedures in this section describe how to convert between the annual percentage rate and effective interest rate.

uFormula

 

 

APR/100

n

–1 100

 

 

EFF =

1 +

 

APR : annual percentage rate (%)

 

 

n

 

 

 

EFF : effective interest rate (%)

 

 

 

 

 

 

 

 

1

 

 

 

n

: number of compoundings

APR =

1 +

EFF n

–1

n 100

 

 

 

 

100

 

 

 

 

 

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 configuring 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 configured correctly.

Use the following function menu to maneuver between calculation result screens.

• {REPT} … {parameter input screen}

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