calculating periodicity

Wouldn’t it be (10%)^(1/4) for quarterly, and (10%)^(1/12) for monthly?

@vincentt oh yeah that’s right, 1.1 instead of 0.1. My noob mistake. 😀

If not mistaken I think it depends on whether they wanted a simple or compounded rate.

Based on 10%.

Simple Rate:
Quarterly
10% * 0.25 = 2.5%

Monthly
10% / 12 months = 0.833%

Compounded Rate:
Quarterly (3 months / 12 months in a year = 0.25)
1.1 ^ 0.25 –> in your BA II Plus type in 1.1 -> y^x (the button above the number 9) -> 0.25

you’ll get 1.0241 which translate to 2.41%

Monthly

1.1 ^ 0.0833 ( 1/ 12 = 0.0833)
= 1.00797
or 0.8%

For compounded rate it’s slightly more complicated because you can’t just use 10 ^ 0.25 you would need to use 1.1 instead (something like 2% = 1.02).

@hairyfairy haha no worries I sometimes just write 10% as I’m too lazy to write 1 + rate or 1 + 10% so 10% is sort of understandable when it comes to power or root 😛