Convert nominal annual interest rates to Effective Annual Rate (EAR / APY) across compounding cycles.
Result
Calculated using the standard APY formula EAR = (1 + r/n)^n - 1.
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EAR = (1 + r / n)^n - 1
12% nominal rate compounded monthly.
Effective Annual Rate (EAR / APY): 12.68%.
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