Time Value of Money
41
Table 4-1 Interest Conversion Menu Items
Item Description
Nom%=
The stated annual interest rate compounded periodically,
such as 18% compounded monthly.
Eff%=
The rate, that compounded only once, that is, annually,
would produce the same final value as the nominal rate.
P/YR=
Payments or compounding periods per year. Default is
12
.
Using the Iconv menu, find the effective rate of a 36.5% nominal rate
compounded daily. See Figure 3-1 for help with navigating through the
menu. This example is calculated with RPN as the active operating mode.
See Table 4-2.
Table 4-2 Interest Rate Conversion Example
Keys Display Description
:&
Opens the Iconv menu, starting with
the current value of the nominal
percentage rate.
36.
5I
Inputs
36.5
as the current nominal
percentage rate.
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