How to convert monthly interest rates to annual or yearly rates and back

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  • เผยแพร่เมื่อ 28 ม.ค. 2025

ความคิดเห็น • 11

  • @AnkitDasCo
    @AnkitDasCo 8 หลายเดือนก่อน +1

    Thanks...just this unlocked new ways for me to look at things.

  • @dinabandhusethi9259
    @dinabandhusethi9259 ปีที่แล้ว +1

    Thank you for your video. I have one question. If I want to calculate the annualized interest rate for each month, then what would be the formula.

    • @StachanovSolutionsServices
      @StachanovSolutionsServices  ปีที่แล้ว

      Thanks. I have to admit that I don't quite understand your question. The topic of the video is how to switch from monthly to annual rates and back.
      If you mean, what would the intererst for , e.g., the 2nd month if you would skip the first. Then it would be (1+monthly rate) ^2-1.
      If you want to know how much the payment only for the second month is you can substract the amount for the 1st month ==> (1+monthly rate)^1-1 from the amount above.

  • @nickerickson7324
    @nickerickson7324 8 หลายเดือนก่อน

    What if the monthly rate is simple, and not compounding?

    • @dubmob151
      @dubmob151 2 หลายเดือนก่อน

      Does anyone ever have interest compounded annually?

  • @rusher80
    @rusher80 ปีที่แล้ว +1

    excellent

  • @alexpotvin201
    @alexpotvin201 ปีที่แล้ว

    you just saved my mba

  • @RO-KO45
    @RO-KO45 ปีที่แล้ว

    Which is better?
    1) 100000 loan at an interest rate of 1.5% monthly
    2) 100000 loan at an interest rate of 10% yearly

    • @dubmob151
      @dubmob151 2 หลายเดือนก่อน +1

      Better for the lender or the borrower?
      The lender would like 1.5%, but the borrower would like 10%