PPT Slide

• Periodic rate = iPer = iNom/m, where m is number of compounding periods per year. m = 4 for quarterly, 12 for monthly, and 360 or 365 for daily compounding.

• Examples:

  8% quarterly: iPer = 8/4 = 2%.
  
  8% daily (365): iPer = 8/365 = 0.021918%.

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