## Effective Rate

Tags: #Economics### Equation

$$r_{e} = (1 + \frac{r}{m})^{m} - 1 \\ r_{e} = e^{r} - 1$$### Latex Code

r_{e} = (1 + \frac{r}{m})^{m} - 1 \\ r_{e} = e^{r} - 1

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### Introduction

#### Equation

#### Latex Code

r_{e} = (1 + \frac{r}{m})^{m} - 1 \\ r_{e} = e^{r} - 1

#### Explanation

Latex code for the Effective Rate. I will briefly introduce the notations in this formulation.

- : Effective Rate
- : Compute the effective rate if your loan/investment is compounded m times per year.
- : Compute the effective rate if your loan/investment is compounded continuously.

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