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INPUTS - WHAT TO TYPE IN
The interest rate might be decimal or percentage: \(0.01\) or \(1%\).
THEORY - THE IDEA OF THE STEPS
In order to convert an interest rate you first have choose the interest type. For example the compound interests regime. Then we compare the rates and their periods \( (1+ir_k)^k = (1+ir_j)^j \). Starting from an annual rate to monthly rate \(1+ir_1)^1 = (1+ir_{12})^{12}\). It means that if we take 12 times the monthly interest rate we get the same result taking 1 time the annual result. If you have the monthly rate, you substitute the montlhy rate. If you have the annual rate, you substitute the annual one.