Interest maths Problem (1 Viewer)

[lookoutastroboy]

Hey guys,

i was wondering if anyone could explain how an annual reducible rate is equal to a flat rate over x amount of years (eg. 4% annual reducible rate = 2.11% flat rate over 2 years).

how does it work because what if you have different repayments for the reducible rates? the flat rate will always be different dependingon the repayment but my Signpost maths Book (5.3) has a table with standard equivalents. aren't repayments included and wont this have a change in the flat rate equivalent?









thanks in advance,
lookoutastroboy

 

[lpodnano]

Hey guys,

i was wondering if anyone could explain how an annual reducible rate is equal to a flat rate over x amount of years (eg. 4% annual reducible rate = 2.11% flat rate over 2 years).

how does it work because what if you have different repayments for the reducible rates? the flat rate will always be different dependingon the repayment but my Signpost maths Book (5.3) has a table with standard equivalents. aren't repayments included and wont this have a change in the flat rate equivalent?









thanks in advance,
lookoutastroboy

I have the same book. Isn't there an equation for the reducible interest rate on page 124. Challenge 4:08