I have these two pictures from Investopedia. Here is the link to the page.
I am confused by this concept. How is the quarterly compound rate 11.825% with a 12% annual rate? Furthermore, how is the DAILY rate 11.66% when the annual rate is 12%.
This just doesn't make sense to me. Could someone explain this, and with that explanation tell me how I can get back from any of these rates (11.825%, 11.71%, 11.66%) back to 12%.
It seems that in the last two examples they are using 6 months (1/6) and 180 days (1/180) instead of 12 (1/12) months and 360(1/360) days in their exponent calculation. Is this an error or am I misunderstanding/misreading this information?