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.
Thanks...just this unlocked new ways for me to look at things.
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.
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.
What if the monthly rate is simple, and not compounding?
Does anyone ever have interest compounded annually?
excellent
Thank you!
you just saved my mba
Great! Thanks.
Which is better?
1) 100000 loan at an interest rate of 1.5% monthly
2) 100000 loan at an interest rate of 10% yearly
Better for the lender or the borrower?
The lender would like 1.5%, but the borrower would like 10%