Calculate effective interest rate
An effective annual interest rate of an investment is a rate with the compounding occurring more than one time per year. In general, this type of interest rate seems to novice investors very complicated. Some people try to calculate this rate themselves using formulas, while it is enough to input only two necessary The effective interest on rate - is 19. 56%. Let's complicate the task by adding the one-time commission loan at the amount of 1% of the sum of 150 000$. In monetary terms – is 1500$.