An investment carries an interest rate of 8 percent compounded annually. When using the time value of money functions of a financial calculator, the interest rate is entered as 8, whereas it is entered as 0.08 when using a spreadsheet to make the time value of money calculations.

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In financial calculators, interest rates are typically entered as whole numbers (e.g., 8 for 8%), whereas in spreadsheets like Excel, interest rates are entered as decimals (e.g., 0.08 for 8%).

An Investment Carries an Interest Rate of 8 Percent Compounded