Interest Rate Basics Exercises

Interest Rate Basics Exercises

Following Abdulla's video on interest rate fundamentals and simple versus compound interest, this video aims to consolidate that knowledge by working through six simple exercises.
Overview

Recap on calculation formulae: periodic rate, EAR and compounding.

Key learning objectives:

  • What is the periodic rate formula?

  • What is the EAR formula?

  • What is the compounding formula?

  • Which of the following is better for a borrower?

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Summary
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Expert
Abdulla Javeri

Abdulla Javeri

Abdulla’s career in the financial markets started in 1990 when he entered the trading floor of the London International Financial Futures Exchange, LIFFE, and qualified as a pit trader in equity and equity index options. In 1996, Abdulla became a trainer for regulatory qualifications and then for non-exam courses, primarily covering all major financial products.

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Interest Rate Basics

Interest Rate Basics

Abdulla Javeri07:58

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