nnual interest rate BAL 500,000.00 5.2500% assume 365 days per year for daily compounding- and I want the annual effective interest rate annually quarterly monthly daily continuously You borrow a lot of money, but this time the bank says they will charge you a discount rate (you get the pro the interest charge at the given rate times the gross principal amount). What is your effective annual cost ceeds net of Assume one year 500,000.00 180.00 40,000.00 8.0000%, BAL Principal number of days in the loan (assume 360 day year) discounted interest Annual interest rate What is the periodic EFFECTIVE Interest Rate? And, the ANNUAL EFFECTIVE Interest Rate - based on periodic compounding