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Interest rates, To transform nominal into effective, we change the…
Interest rates
Classification
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Proportional
The frequencies are the same, just measured differently.
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Equivalent
Two taxes are equivalent when, if a value k is applied, we obtain the same value.
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Average tax
You know what it is, the formula is just weird.
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To transform nominal into effective, we change the frequency of tax, not the frequency of capitalization.
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