Terminology

[David Sharp]

I apologize if this is the wrong group to ask this question, but I don't
know where else to ask. It concerns terminology related to interest rates.

If the interest rate is 5%, what is the proper term to refer to the sum

1 + .05?

I've been tasked with writing technical documentation for a software
project, and I'm trying to come up with a label for use in a
step-by-step derivation I'm doing to explain how a formula was arrived at.

Currently the first portion looks like:

Let r be the interest rate percentage.
Let R be (1+r). <--- I'm trying to come up with a label for R rather
than just defining it as a formula.

Any help would be greatly appreciated.
Thanks,
Dave

[Barry Schwarz]

On Thu, 13 Dec 2007 08:39:21 -0600, David Sharp

Post by David Sharp
I apologize if this is the wrong group to ask this question, but I don't
know where else to ask. It concerns terminology related to interest rates.
If the interest rate is 5%, what is the proper term to refer to the sum
1 + .05?
I've been tasked with writing technical documentation for a software
project, and I'm trying to come up with a label for use in a
step-by-step derivation I'm doing to explain how a formula was arrived at.
Let r be the interest rate percentage.
Let R be (1+r). <--- I'm trying to come up with a label for R rather
than just defining it as a formula.

In one article, Mathworld refers to a similar expression as the
effective rate but that doesn't really sound right.