That period is one year in this case. These are the formula and calculations: Investment B has a higher stated nominal interest rate but the effective annual interest rate is lower than the ...

Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate This paper examines the distribution of output around capacity when money ...

A real interest rate is the difference between a nominal interest rate and the rate of inflation. Nominal interest rates are the rates set by financial institutions, such as banks and credit card ...