Covered interest rate parity - forward rate

Why currency forward rate formula is below?

instead of

F= S*(1+RA)^T/(1+RB)^T ; T= (days/360)

I think it’s more close to forward rate general form F=S* (1+R)^T??

The Economics reading assumes that interest rates are nominal (e.g., LIBOR) while the Derivatives reading assumes that they’re effective.

I wrote an article on this: At the bottom there’s a reconciliation of the Econ and Derivatives formulae.

Wow, cool! Financial Exam Help 123

Sorry i’m not really sure what nominal and effective means@@

Could you please help eleborate it? Thanks.

Here’s the article I wrote on that very question:

Cool! Magic.

Many thank!

My pleasure.