Effective rate corresponding to a nominal rate of 5% compounded 4 times per period:

Schedule of nominal rates to effective rates, compounded 12 times per period:

Convert a schedule of nominal rates to effective rates compounded 12 times per period:

Compound annual growth rate (CAGR) corresponding to a schedule of rates:

Convert a term structure of interest rates (yield curve) to a list of implied forward rates and the corresponding intervals over which they are valid:

Solve for the nominal rate corresponding to an effective rate of 5% compounded quarterly:

Use EffectiveInterest with TimeValue:

A compounding interval of zero can be used to specify continuous compounding:

An integral compounding frequency may be used to specify compounding of less than once per period. As expected, the effective rate in this case is less than the nominal rate:

Simple interest can be simulated by using an integral compounding interval equal to the growth period:

This is equivalent to the analogous simple interest computation:

EffectiveInterest works with symbolic parameters:

Solutions to equations involving EffectiveInterest can be found in terms of symbolic parameters:

EffectiveInterest from a TimeSeries:

Study the convergence of the future value of an amount as interest compounding approaches infinity:

Lender A quotes the nominal interest rate on a loan at 8% per year with continuous compounding. Lender B quotes their rate using quarterly compounding. Convert lender A's rate to an equivalent rate with quarterly compounding so that the two rates may be compared:

Use FindRoot instead: