Effective Rate
Tags: #EconomicsEquation
$$r_{e} = (1 + \frac{r}{m})^{m} - 1 \\ r_{e} = e^{r} - 1$$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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