"COMPOUND INTEREST, FREQUENCY OF CONVERSION, INTEREST PERIOD, COMPOUND AMOUNT, NOMINAL AND EFFECTIVE RATES. The nominal annual rate % of compounding is ANNRATE%, the compounding period in months is CMPERIOD. = 1/30 for daily, = 1 for monthly, =3 for quarterly, =12 for yearly. FREQCONV is the number of compoundings in one year. NPERIODS is number of compounding periods inthe term NUMYEARS. RATE%PER is the nominal rate % per compounding period. ACCUMVAL is the value of the PRINCIPL after NUMYEARS of compounding at a nominalannual rate of ANNRATE%. CMPINT is actual interest and EFFRATE% is effective annual interest rate. *** Answers to problems *** (c) PCSCC, Inc., 1993 (a) Set ANNRATE%=5, CMPERIOD=12, NUMYEARS=1 and PRINCIPL=1000. The result is 3*CMPINT (=50) or $150. Note: 3 years simple interest is 3 times one. (b) Same as (a) but set NUMYEARS=3. Result is CMPINT=157.62. Type any key to exit. ||(a) Find the simple interest on $1,000 for 3 years at 5% simpleinterest. (b) Find the compound interest on $1,000 for 3 years if interest at 5%is converted annually to principal. Type , to see answers. Type (F2) to return to help file."
