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Dear sir john
I did watch the lectures butJust needed some confirmation in this part..
Effective annual interest rates are part of the compounding interest rates .
Am I correct ?
Because compounding can be based on any period .
But compounding yearly will make it EAR
That’s what I stated
“Effective annual interest rates are part of the compounding interest rates . “
Am I correct sir?
Everything you have written is correct, although it would be better to say that ‘effective interest rates are as a result of compounding interest rates ‘ (rather than saying that they ‘are part of’).
However that doesn’t really matter since you cannot be expected to type explanations in the exam 🙂
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