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To calculate the interest rate per annum, you need to divide the amount of interest paid by the principal amount borrowed or invested, and then multiply by the number of periods in a year. For example, if you borrow $1,000 and pay $100 in interest over the course of a year, the interest rate per annum would be (100 / 1000) x 100% = 10%. This formula can be used for both simple and compound interest. Keep in mind that the interest rate per annum may vary depending on the compounding period, such as daily, monthly, quarterly, or annually.
The effects of interest rates are often not directly felt but play out over a long time as valuations of real-estate and other assets adjust.
At Horizon65, we created a mobile app that enabled you to check the effect of high interest rates on your savings and to simulate potential investments that can defend against it.