Paper 1 · Financial Maths
⏱ Tested in 5+ recent exam questions
Lesson 4 of 8
Financial Maths 4 – Converting interest rates from monthly to yearly etc.
This tutorial is for members
Read the lesson notes free below — subscribe to watch the full worked video and download the PDF.
Subscribe for full access · €199/yrYou’ll learn
- Convert between a period rate and the AER using (1 + iperiod)ᵏ = (1 + iyearly)
- Find a monthly, weekly or quarterly rate from an AER with a fractional power like (1.05)^(1/12)
- Explain AER vs APR and why you never just divide the annual rate by 12
- Handle awkward periods like 9 months using (1 + i)¹ = (1 + AER)^(3/4)
Most recent exam questions
- 2024 P1 Q7(c)(iii)
- 2024 P1 Q8(f) — deferred
- 2023 P1 Q7(c) — deferred
- 2023 P1 Q7(d)(i) — deferred
- 2023 P1 Q8(c)
💬 Stuck on something in this lesson?
Send your question with this lesson’s name attached — you’ll get a reply by email.