# Periodic rate of interest

From ACT Wiki

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.