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=EFFECT(nomrate, npy)=
<div style="font-size:30px">'''EFFECT (NominalInterestRate,CompoundingPeriodsPerYear)'''</div><br/>
where,
where,
*<math>nomrate</math> is the nominal interest rate, and
*<math>NominalInterestRate</math> is the nominal interest rate, and
*<math>npy</math> is the number of compounding periods per year.
*<math>CompoundingPeriodsPerYear</math> is the number of compounding periods per year.
EFFECT() calculates the effective annual interest rate.
EFFECT(), returns the effective annual interest rate.
== Description ==
== Description ==
EFFECT(nomrate, npy)
EFFECT (NominalInterestRate,CompoundingPeriodsPerYear)
*Arguments <math>nomrate</math> and <math>npy</math> should be positive numeric values.
*Arguments <math>NominalInterestRate</math> and <math>npy</math> should be positive numeric values.
*<math>nomrate</math> should be >0 and <math>npy</math> should be >1.
*<math>NominalInterestRate,</math> should be >0 and <math>CompoundingPeriodsPerYear</math> should be >1.
*For invalid arguments, Calci returns an error message.
*For invalid arguments, Calci returns an error message.
*Formula: Effective interest rate <math>r</math> is calculated as follows -
*Formula: Effective interest rate <math>r</math> is calculated as follows -