How to convert monthly interest rates to annual or yearly rates and back

In this video we show how to convert monthly interest rates to annual or yearly rates and back. You might think you can do this by just multiplying the monthly rate by twelve. This is not completely correct. Watch the video for a better calculation in Excel. Good luck.
André Koch, Stachanov Solutions & Services

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[AnkitDasCo]

Thanks...just this unlocked new ways for me to look at things.

[nickerickson]

What if the monthly rate is simple, and not compounding?

[dinabandhusethi]

Thank you for your video. I have one question. If I want to calculate the annualized interest rate for each month, then what would be the formula.

[RO-KO]

Which is better?

1) loan at an interest rate of 1.5% monthly

2) loan at an interest rate of 10% yearly