Rate Conversion
1 formula
A quoted annual rate and the rate you actually earn or pay are different things once compounding is applied. A 12% nominal rate compounded monthly is 12.68% effective. These formulas translate APR and EAR in both directions under annual, periodic and continuous compounding. Solving for an implied rate from cash flows lives with the concept it belongs to: the Rate option under Lump Sum or Present Value of an Annuity.