Effective Annual Rate & Nominal Rate

Author

Texas Instruments

Alignment

Standards Alignment

Textbook Alignment

Subject Area

Math: Algebra II: Logarithms and Exponentials

Math: Precalculus: Exponential and Logarithmic Functions

Financial Literacy: Investments: Investments

Level

9-12

Activity Time

60 Minutes

TI Calculator

TI-Nspire™ CX series

TI-84 series

TI-Nspire Version

5.4

Resource Types

Lessons

Format

TNS

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Effective Annual Rate & Nominal Rate

Activity Overview

In this activity, students use the effective annual rate calculation to compare the nominal rates of various financial instruments.

About the Lesson

In this activity, students will evaluate different scenarios, including:

Given a nominal rate and the number of compounding periods, determine the effective annual rate.
Given an effective annual yield and the number of compounding periods, determine the nominal interest rate.

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Lesson Files

Effective-Annual-Rate-and-Nominal-Rate-84 (1).zip Effective-Annual-Rate-and-Nominal-Rate-NSP (2).zip

Author

Texas Instruments

Alignment

Standards Alignment

Textbook Alignment

Subject Area

Math: Algebra II: Logarithms and Exponentials

Math: Precalculus: Exponential and Logarithmic Functions

Financial Literacy: Investments: Investments

Level

9-12

Activity Time

60 Minutes

TI Calculator

TI-Nspire™ CX series

TI-84 series

TI-Nspire Version

5.4

Resource Types

Lessons

Format

TNS

Report an Issue

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Effective Annual Rate & Nominal Rate

Effective Annual Rate & Nominal Rate

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