This calculator will help you compare different quoted interest rates. Which is a better nominal rate, 9.25% compounded quarterly or 9.10% compounded daily? Use this calculator to find the answer. Additionally, given either the nominal rate or the effective rate at a particular compounding period, you can solve for the other.
The nominal rate is the quoted rate. The effective rate is the actual rate after the effects of compounding. Therefore the effective rate is higher than the nominal rate.
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