Difference between revisions of "Manuals/calci/EFFECT"
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*Formula: Effective interest rate <math>r</math> is calculated as follows - | *Formula: Effective interest rate <math>r</math> is calculated as follows - | ||
| − | <math>r = | + | <math>r = (1 + \frac{nomrate}{npy}&pow;(npy)) - 1 </math> |
== Examples == | == Examples == | ||
Revision as of 17:27, 23 January 2014
EFFECT(nomrate, npy)
where,
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle nomrate} is the nominal interest rate, and
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle npy} is the number of compounding periods per year.
EFFECT() calculates the effective annual interest rate.
Description
EFFECT(nomrate, npy)
- Arguments Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle nomrate} and Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle npy} should be positive numeric values.
- Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle nomrate} should be >0 and Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle npy} should be >1.
- For invalid arguments, Calci returns an error message.
- Formula: Effective interest rate is calculated as follows -
is calculated as follows -Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle r = (1 + \frac{nomrate}{npy}&pow;(npy)) - 1 }
Examples
Consider the following example that shows the use of EFFECT function:
| 6% | 8.5% | |
| 3 | 4 | |
=EFFECT(A1,A2): Displays 0.06120800000000015 as a result.
=EFFECT(B1,B2): Displays 0.8774796172119137 as a result.
=EFFECT("6%",4): Displays 0.06136355062499965 as a result.