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

APR

: annual percentage rate (%)

 

 

 

 

EFF =

1+

 

EFF

: effective interest rate (%)

 

 

n

 

 

 

n

: number of compoundings

 

 

 

 

 

 

 

 

1

 

 

 

 

 

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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