Hi Mark, thanks for that. Love the graphics, never seen it done like this on a web page. I'm knocking on a bit at 70 and whilst I was taught math to calculus level at college I was poor at it because I needed a practical use for what I was learning and never found one. Now I find myself enjoying financial math purely out of interest. I had already transposed the equation but lacking confidence posted here and you confirmed that my answer was correct.
Question: why can't EAR [MATH]i[/MATH] be used as the basis for interest on all loans that are compounded?
What happens when the exponent numerator and denominator become the same [MATH] n/n[/MATH].
Does the EAR equation break down?