Periodic rate of interest: Difference between revisions
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imported>Doug Williamson (Spacing and link with ACT/365 fixed page.) |
imported>Doug Williamson (Expand to explain usefulness.) |
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The total interest for any given period - for example 0.014% per day. | The total interest (as a percentage) for any given period - for example 0.014% per day. | ||
The given period may be less than one year, equal to one year, or more than one year. | The given period may be less than one year, equal to one year, or more than one year. | ||
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Not to be confused with the ''effective annual rate'' and the ''nominal annual rate'', which are different. | Not to be confused with the ''effective annual rate'' and the ''nominal annual rate'', which are different. | ||
Periodic rates of interest are useful for calculating money amounts of interest payable or receivable. | |||
Revision as of 20:47, 12 January 2016
The total interest (as a percentage) for any given period - for example 0.014% per day.
The given period may be less than one year, equal to one year, or more than one year.
Another example of a periodic rate of interest would be 12.36% per two years.
Not to be confused with the effective annual rate and the nominal annual rate, which are different.
Periodic rates of interest are useful for calculating money amounts of interest payable or receivable.
