#### The following table shows an example of the simple **formula** in practice: # of employees at the end of a month. # of employees at the beginning of a month. # of employees at the end of a month/ # of employees at the beginning of a month. X 100. Retention **rate** percentage. 18. At the end of the year, your will get another earning of 1.7% x RM10,170 = RM172.89. So your total return is RM170+RM172.89 = RM342.89. The **Effective** Annual **Rate** (EAR) = RM342.89/RM10,000 = 3.4289%. To easily calculate the EAR, use the **formula** below: where i = nominal annual **rate** (normally stated); n = number of compounding period (compounding. MathActusMagazineGuideTests ComparatifsWebContactNo Result View All Result How **effective** **annual** **rate** calculated inScience Math Reading Time mins read **Effective** **Annual** **Rate** **Formula** the number compounding periods per year. The **effective** **annual** **rate** the actual....

**formula**for calculating the

**effective**interest

**rate**using the nominal

**rate**is.

**Effective**Annual Interest = (1+ (1/n)) ^ n – 1. Here ‘i’ is the nominal interest

**rate**, and ‘n’ is the number of compounding periods. It is a general rule that as the number of compounding periods increases, the

**effective**annual interest

**rate**also rises. In this

**formula**, the i stands for the interest

**rate**that is given to you by the company. The n is the number of times that calculations are made in a year. So, if calculations are done on a monthly. Step 2. Let’s refer to the

**rate**we obtained in step 1 as g (

**quarterly**) (sort of like the men’s magazine). Remember, it’s a

**quarterly rate**and we’re looking for an annual

**rate**, so we annualize it using the following

**formula**: New yearly

**rates**is the same as the organization speed over a year if GDP remaining growing at the same every.