If you are calculating your monthly interest rate in an effort to assess loan options, reviewing the effective rate is also valuable. The effective annual rate formula is [1 + (i/n)] ^n -1.

Here's the effective interest rate formula: 1 + (nominal interest rate ... However shorter tenures also mean a higher monthly ...

If a company does finance an asset with a capital lease, we can calculate the effective ... we use the formula from above that adjusts the interest rate for monthly payments instead of annual.

That’s because the effective interest rate also considers the effect of compounding. We’ll provide the formula later in the article. Currently, all financial institutions in Singapore are required by ...