"COMPOUND INTEREST, FREQUENCY OF CONVERSION, INTEREST PERIOD, COMPOUND AMOUNT, NOMINAL and EFFECTIVE RATES. The nominal annual rate percent ofcompounding 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. N is number of compounding/interest periods in the term NUMYEARS. I is the nominal rate % per compounding period. S is thevalue of the principal P after NUMYEARS of compounding at a nominal annual rate of ANNRATE%. EARNINT is actual earned interest and EFFRATE% is effective annual interest rate. (c) PCSCC, Inc., 1993 || A principal of $1,000 is invested at 7.5% nominal interest, compounded daily (CMPERIOD=1/30) for 1 year. (a) What is its compound value after 1 year? (b) What is the earned interest? (c) What is the effective rate? Type comma key to see answers. Type (F2) to return to helpfile."
