The effective annual interest rate is calculated using the following formula: Effective Annual Interest Rate=(1+in)n−1where:i=Nominal interest raten=Number of periods\\begin{aligned} &Effective\\ Annual\\ Interest\\ Rate=\\left ( 1+\\frac{i}{n} \\right )^n-1\\\\ &\ extbf{where:}\\\\ &i=\ ext{Nominal interest rate}\\\\ &n=\ ext{Number of periods}\\\\ \\end{aligned}​Effective Annual Interest Rate=(1+ni​)n−1where:i=Nominal interest raten=Number of periods​ Although it can be done by hand, most investors will use a financial calculator, spreadsheet, or online program. Moreover, investment websites and other financial resources regularly publish the effective annual interest rate of a loan or investment. This figure is also often included in the prospectus and marketing documents prepared by the security issuers.