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| + | =EFFECT(nomrate, npy)= |
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| − | <font color="#000000">'''<font face="Arial, sans-serif"><font size="2">EFFECT(nom rate, npy)</font></font>'''</font> | + | where, |
| | + | *<math>nomrate</math> is the nominal interest rate, and |
| | + | *<math>npy</math> is the number of compounding periods per year. |
| | | | |
| − | <font color="#000000"><font face="Arial, sans-serif"><font size="2">Where ;nom rate' is the nominal interest rate and 'npy' is the number of compounding periods per year.</font></font></font>
| + | EFFECT() calculates the effective annual interest rate. |
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| − | </div>
| + | == Description == |
| − | ----
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| − | <div id="1SpaceContent" class="zcontent" align="left">
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| − | <font color="#000000"><font face="Arial, sans-serif"><font size="2">This function find outs the effective annual interest rate, given the nominal annual interest rate and the number of compounding periods per year.</font></font></font>
| + | EFFECT(nomrate, npy) |
| | | | |
| − | </div> | + | *Arguments <math>nomrate</math> and <math>npy</math> should be positive numeric values. |
| − | ----
| + | *<math>nomrate</math> should be >0 and <math>npy</math> should be >1. |
| − | <div id="7SpaceContent" class="zcontent" align="left"> | + | *For invalid arguments, Calci returns an error message. |
| | + | *Formula: Effective interest rate <math>r</math> is calculated as follows - |
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| − | * <font color="#000000"><font face="Arial, sans-serif"><font size="2">Arguments should be numeric.</font></font></font>
| + | <math>r = {1 + /frac{nomrate,npy}/power{npy} - 1 |
| − | * <font color="#000000"><font face="Arial, sans-serif"><font size="2">EFFECT returns the error value, when nom rate ≤ 0 or npy < 1.</font></font></font>
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| − | * <font color="#000000"><font face="Arial, sans-serif"><font size="2">EFFECT is calculated as follows: </font></font></font>
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| − | <font color="#000000"></font>
| + | == Examples == |
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| − | <br /><br />
| + | Consider the following example that shows the use of EFFECT function: |
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| − | </div>
| + | <div id="2SpaceContent" class="zcontent" align="left"> |
| − | ----
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| − | <div id="12SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="left"> | |
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| − | EFFECT
| + | {| id="TABLE3" class="SpreadSheet blue" |
| | + | |- class="even" |
| | + | | class="sshl_f" | 6% |
| | + | | class=" " |8.5% |
| | + | | class=" " | |
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| − | </div></div>
| + | |- class="odd" |
| − | ----
| + | | class="sshl_f" | 3 |
| − | <div id="8SpaceContent" class="zcontent" align="left">
| + | | class=" " |4 |
| | + | | class=" " | |
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| − | <font color="#000000"><font face="Arial, sans-serif"><font size="2">Lets see an example,</font></font></font>
| + | |- class="even" |
| − | | + | | class="sshl_f" | |
| − | <font color="#000000"><font face="Arial, sans-serif"><font size="2">EFFECT(nom rate, npy)</font></font></font>
| + | | class=" " | |
| − | | + | | class=" " | |
| − | <font color="#000000"><font face="Arial, sans-serif"><font size="2">'''B'''</font></font></font>
| + | |} |
| − | | + | </div> |
| − | <font color="#000000"><font face="Arial, sans-serif"><font size="2">6%</font></font></font>
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| − | | |
| − | <font color="#000000"><font face="Arial, sans-serif"><font size="2">3</font></font></font>
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| − | <font color="#000000"><font face="Arial, sans-serif"><font size="2"><nowiki>=EFFECT(B2,B3) is 0.0612</nowiki></font></font></font>
| + | =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. |
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| − | <br />
| + | == See Also == |
| | | | |
| − | </div>
| + | *[[Manuals/calci/RATE | RATE]] |
| − | ----
| + | *[[Manuals/calci/INTRATE | INTRATE]] |
| − | <div id="10SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Syntax </div><div class="ZEditBox"><center></center></div></div>
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| − | ----
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| − | <div id="4SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Remarks </div></div>
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| − | ----
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| − | <div id="3SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Examples </div></div>
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| − | ----
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| − | <div id="11SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Description </div></div>
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| − | ----
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| − | <div id="5SpaceContent" class="zcontent" align="left">
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| − | {| id="TABLE6" class="SpreadSheet blue"
| + | == References == |
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| − | | class="sshl_f" | 0.061208
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| − | | class="SelectTD SelectTD" |
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| − | |}
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| − | <div align="left">[[Image:calci1.gif]]</div></div>
| + | *[http://en.wikipedia.org/wiki/Effective_interest_rate Effective Interest Rate] |
| − | ----
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| − | <div id="9SpaceContent" class="zcontent" align="left"><div>[[Image:15.JPG|100%px|http://store.zcubes.com/33975CA25A304262905E768B19753F5D/Uploaded/15.JPG]]</div></div>
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