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?

Summary

Expert### 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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