Question : Decompounding formula in excel
Say the annual rate is 25%.
What is the formula to de-compound it to semi-annual, quarterly and monthly.
Also, what is the formula to compound back the 3 mentioned terms back to an annual rate.
Solution : Decompounding formula in excel
where X is rate
n is periods
so for 25% quarterly
= 5.7% compounding per quarter
to re compound