Cryptocurrency Q&A
What is the EAR formula?
What is the EAR formula?
CryptoGladiator
Tue Oct 29 2024
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7 answers
1726
I'm trying to understand the EAR formula. Could someone explain what it is and how it's used?
7 answers
SilenceSolitude
Thu Oct 31 2024
The calculation of the Effective Annual Rate (EAR) involves a specific formula.
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emma_carter_doctor
Thu Oct 31 2024
The formula for EAR is derived by taking the base of one plus the stated interest rate divided by the number of interest payments per year, raised to the power of the number of payments, and then subtracting one.
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Daniele
Thu Oct 31 2024
In this formula, 'i' represents the stated interest rate expressed as a decimal.
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SumoMighty
Thu Oct 31 2024
The stated interest rate is usually provided as a percentage.
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Nicolo
Wed Oct 30 2024
To use this rate in the EAR formula, it is necessary to convert the percentage into a decimal by dividing it by 100.
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