Converting CFY to BEY everyone, instead, trying, death

stronger

Hi everyone,

can anyone shed some light on the logic behind this calculation, just trying to get a good understanding of it instead of just memorizing it to death.

BEY = [ (1+monthly CFY)^6 - 1 ] * 2

thanks

sgupta0827

CFY is monthly. BEY is 6 months, multiply by 2 to convert to annual rate.

So, to get BEY, you need to compound the CFY by 6 periods/months.