Compound Interest to Equivalent

[Mashina Veremaito]

Hi
Can anyone help me find the formula of converting compound interest rate to equivalent?

 

[Otis]

… the formula of converting compound interest rate to equivalent?

Hi. Are you asking for the equivalent annual rate? For example, 3.102% compounded 365 times per year is equivalent to 3.15% per year.

Let R = the annual rate (in decimal form)
Let r = the compounded rate (in decimal form)
Let n = the number of compounding periods per year

R = (1 + r/n)^n - 1

0.03150 = (1 + 0.03102/365)^365 - 1

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[Mashina Veremaito]

@Otis here's the question:
Suppose that after making 50 payments, the interest rate changes to J2=9% p.a.:

Convert the interest rate J2=9% to J12 equivalent

 

[Otis]

@Otis here's the question:
Suppose that after making 50 payments, the interest rate changes to J2=9% p.a.:

Convert the interest rate J2=9% to J12 equivalent

Hi. I don't understand the scenario. Please provide a complete description. I'm not familiar with the J-notation, also.

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