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This video tutorial explains how to move beyond annual time periods and constant interest rates using flexible notation. It addresses dealing with interest rates when time units change and transitioning from a constant to a changing interest rate. By introducing a rate applicable to the nth part of a year (M), calculations can be made to determine the value of one euro over time with varying interest rates. This approach allows for easy conversion from a yearly to a monthly interest rate, starting with a given annual interest rate of 3 percent.
