90 6: Interest Rate Conversions
File name : English-M02-1-040308(Print).doc Print data : 2004/3/9
7
@
25
&
0
Stores 84 deposit periods,
$25 per deposit, and no
money before the first
regular deposit.
Value of account in 7
years.
If the interest rate were the unknown, you would first do the TVM
calculation to get I%YR (5.01). Then, in the ICNV PER menu, store 5.01
as NOM% and 12 as P for monthly compounding. Calculate EFF%
(5.13). Then change P to 365 for daily compounding and calculate
NOM% (5.00). This is the bank’s rate.
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