Calculating Nominal and Effective Interest Rates
Here in this video, I explain the two rates (Nominal and Effective). Show how the formula is derived to calculate the nominal and effective interest rates and do a few examples on how to change the rates from Nominal to Effective or Effective to Nominal.
0:00 Intro
0:25 Explanation of Nominal and Effective Interest Rate
2:05 Solving for Effective Interest using substitution
7:18 Generating a Formula for Effective Interest Rate
10:08 Generating a Formula for Nominal Interest Rate
12:20 Solving for Effective Interest Rate using Formula
14:25 Solving for Nominal Interest Rate using Formula