(See related pages)
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| Nominal and effective Understand nominal and effective interest rate statements. |
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| Effective annual interest rate Derive and use the formula for the effective annual interest rate. |
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| Effective interest rate Determine the effective interest rate for any time period. |
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| Compare PP and CP Determine the correct method for equivalence calculations for different payment and compounding periods. |
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| Single amounts: PP >= CP Make equivalence calculations for payment periods equal to or longer than the compounding period when only single amounts occur. |
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| Series: PP >= CP Make equivalence calculations when uniform or gradient series occur for payment periods equal to or longer than the compounding period. |
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| Single and series: PP < CP Make equivalence calculations for payment periods shorter than the compounding period. |
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| Continuous compounding Calculate and use an effective interest rate for continuous compounding. |
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| Varying rates Account for interest rates that vary over time when performing equivalency computations. |