Perjury is considered a serious offense as it can be used to usurp the power of the courts, resulting in miscarriages of justice. In the United States, for example, the general perjury statute under Federal law classifies perjury as a felony and provides for a prison sentence of up to five years.
Effective interest rate for t periods, i t = (1 + i) t - 1 or as one equation i t = (1 + (r / m)) mt - 1. The rate per compounding period P = R / m, in percent.
Effective Interest Method. What is the 'Effective Interest Method'. The effective interest rate is a method used by a bond buyer to account for accretion of a bond discount as the balance is moved into interest income, and to amortize a bond premium into an interest expense.