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Capital budgeting

This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.

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September 9, 2017 at 2:00 pm #407012
emily1021
Member
- Topics: 9
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May I know the difference of nominal rate, effective annual rate, equivalent annual rate? Is there are same formula?
I’m so confuse.
September 10, 2017 at 11:16 am #407077
John Moffat
Keymaster
- Topics: 57
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Nominal rate is the rate quoted e.g. 1% per month.
Effective annual rate and equivalent annual rate are the same as each other – stating the interest as a yearly basis.
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