Question #42087

Write a program to calculate Effective Period Rate (EPR) and (ER) Effective Rate:
Formula : Effective Period Rate = Nominal Annual Rate / n
Example:
What is the effective period interest rate for nominal annual interest rate of 5% compounded monthly?
Solution:
Effective Period Rate = 5% / 12 months = 0.05 / 12 = 0.4167%
Formula : Effective Rate = (1 + Nominal Rate / n)n – 1

Expert's answer

`#include <iostream>`

#include <conio.h>

using namespace std;

int main() {

double nr;

int n;

cout << "Enter nominal rate: ";

cin >> nr;

cout << "Enter n: ";

cin >> n;

nr*=0.01;

cout.precision(4);

cout << "Effective Period Rate = " << fixed << nr/n*100 << "%\n";

cout << "Effective Rate = " << fixed << ((1 + nr/n)*n-1)*100 << "%\n";

return 0;

}

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Assignment Expert22.05.14, 16:38Dear Meme,

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meme11.05.14, 14:19Thank you sooooooooooooo much

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