6. Interest Rate Conversion

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

uFormula

EFF =

 

1+

APR/100

n

 

100

 

 

–1

APR : annual percent rate (%)

 

 

 

n

 

 

 

 

 

 

EFF : effective interest rate (%)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

 

 

 

 

 

n : number of compoundings

APR =

1+

EFF

n

–1

 

n 100

 

 

 

 

100

 

 

 

 

 

 

 

 

Press 5(CONVERT) from the Financial 1 screen to display the following input screen for interest rate conversion.

5(CONVERT)

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 percent rate to effective interest rate}

{'APR} … {converts effective interest rate to annual percent rate}

• An error occurs if parameters are not configured correctly.

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

• {REPEAT} … {parameter input screen}

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