Capital budgeting

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September 9, 2017 at 2:00 pm #407012
emily1021
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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
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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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