convert a stated rate to the effective rate
interest rate, expressed as a decimal number
number of times the rate is compounded in the period
Continuous compounding is indicated by specifying infinity as the number of compounding periods.
Since effectiverate used to be part of the (now deprecated) finance package, for compatibility with older worksheets, this command can also be called using finance[effectiverate]. However, it is recommended that you use the superseding package name, Finance, instead: Finance[effectiverate].
A given loan is at 12% compounded monthly. The effective rate is then 1% monthly compounded 12 times. One can calculate it as follows:
or about 12.7%. This can also be seen as:
Compounded continuously, the effective rate is:
The Finance[effectiverate] command was introduced in Maple 15.
For more information on Maple 15 changes, see Updates in Maple 15.
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