Jan 26, 2013 Thread starter #1 L linapril New member Dec 21, 2012 23 If the APR is 3%, and I want to find the tri-monthly interest rate, is the correct way to find it: (0.03+1)^(4/12)-1 ?
If the APR is 3%, and I want to find the tri-monthly interest rate, is the correct way to find it: (0.03+1)^(4/12)-1 ?
Jan 26, 2013 Admin #2 M MarkFL Administrator Staff member Feb 24, 2012 13,775 Taken from Wikipedia: The formula for calculating the future value of an investment having an annual nominal interest rate is: $\displaystyle A=P\left(1+\frac{r}{n} \right)^{nt}$ where: A = future value P = principal amount (initial investment) r = annual nominal interest rate (as a decimal, not in percentage) n = number of times the interest is compounded per year t = number of years In your case r = 0.03 and n = 4.
Taken from Wikipedia: The formula for calculating the future value of an investment having an annual nominal interest rate is: $\displaystyle A=P\left(1+\frac{r}{n} \right)^{nt}$ where: A = future value P = principal amount (initial investment) r = annual nominal interest rate (as a decimal, not in percentage) n = number of times the interest is compounded per year t = number of years In your case r = 0.03 and n = 4.