Difference between revisions of "Manuals/calci/EFFECT"

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(Created page with "<div id="6SpaceContent" class="zcontent" align="left">  <font color="#000000">'''<font face="Arial, sans-serif"><font size="2">EFFECT(nom rate, npy)</font></font>'''</font...")
 
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=EFFECT(nomrate, npy)=
  
<font color="#000000">'''<font face="Arial, sans-serif"><font size="2">EFFECT(nom rate, npy)</font></font>'''</font>
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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>
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EFFECT() calculates the effective annual interest rate.
  
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== Description ==
----
 
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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>
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EFFECT(nomrate, npy)
  
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*Arguments <math>nomrate</math> and <math>npy</math> should be positive numeric values.
----
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*<math>nomrate</math> should be &gt;0 and <math>npy</math> should be &gt;1.
<div id="7SpaceContent" class="zcontent" align="left"> 
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*For invalid arguments, Calci returns an error message.
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*Formula: Effective interest rate <math>r</math> is calculated as follows -
  
* <font color="#000000"><font face="Arial, sans-serif"><font size="2">Arguments should be numeric.</font></font></font>
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<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 &lt; 1.</font></font></font>
 
* <font color="#000000"><font face="Arial, sans-serif"><font size="2">EFFECT is calculated as follows: </font></font></font>
 
  
<font color="#000000"></font>
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== Examples ==
  
<br /><br />
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Consider the following example that shows the use of EFFECT function:
  
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<div id="2SpaceContent" class="zcontent" align="left">
----
 
<div id="12SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="left">
 
  
EFFECT
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{| id="TABLE3" class="SpreadSheet blue"
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|- class="even"
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| class="sshl_f" | 6%
 +
| class=" " |8.5%
 +
| class=" " |
  
</div></div>
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|- class="odd"
----
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| class="sshl_f" | 3
<div id="8SpaceContent" class="zcontent" align="left"
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| class=" " |4
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| class=" " |
  
<font color="#000000"><font face="Arial, sans-serif"><font size="2">Lets see an example,</font></font></font>
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|- class="even"
 
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| class="sshl_f" |
<font color="#000000"><font face="Arial, sans-serif"><font size="2">EFFECT(nom rate, npy)</font></font></font>
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| class=" " |
 
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| class=" " |
<font color="#000000"><font face="Arial, sans-serif"><font size="2">'''B'''</font></font></font>
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|}
 
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</div>
<font color="#000000"><font face="Arial, sans-serif"><font size="2">6%</font></font></font>
 
 
 
<font color="#000000"><font face="Arial, sans-serif"><font size="2">3</font></font></font>
 
  
<font color="#000000"><font face="Arial, sans-serif"><font size="2"><nowiki>=EFFECT(B2,B3) is 0.0612</nowiki></font></font></font>
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=EFFECT(A1,A2):  ''Displays 0.06120800000000015'' as a result.
 +
=EFFECT(B1,B2):  ''Displays 0.8774796172119137'' as a result.
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=EFFECT("6%",4): ''Displays 0.06136355062499965'' as a result.
  
<br />
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== See Also ==
  
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*[[Manuals/calci/RATE | RATE]]
----
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*[[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>
 
----
 
<div id="4SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Remarks </div></div>
 
----
 
<div id="3SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Examples </div></div>
 
----
 
<div id="11SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Description </div></div>
 
----
 
<div id="5SpaceContent" class="zcontent" align="left">
 
  
{| id="TABLE6" class="SpreadSheet blue"
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== References ==
|- class="even"
 
| class=" " |
 
| Column1
 
| Column2
 
| Column3
 
| Column4
 
|- class="odd"
 
| class=" " | Row1
 
| class="sshl_f" | 6%
 
| class="                                                  " |
 
|
 
|
 
|- class="even"
 
| class="  " | Row2
 
| class="sshl_f" | 3
 
|
 
|
 
|
 
|- class="odd"
 
| Row3
 
| class="sshl_f" | 0.061208
 
|
 
|
 
|
 
|- class="even"
 
| Row4
 
| class="                  " |
 
|
 
|
 
|
 
|- class="odd"
 
| class=" " | Row5
 
|
 
|
 
|
 
|
 
|- class="even"
 
| Row6
 
|
 
|
 
|
 
| class="SelectTD  SelectTD" |
 
|}
 
  
<div align="left">[[Image:calci1.gif]]</div></div>
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*[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>
 
----
 

Revision as of 08:28, 23 January 2014

EFFECT(nomrate, npy)

where,

  • is the nominal interest rate, and
  • is the number of compounding periods per year.

EFFECT() calculates the effective annual interest rate.

Description

EFFECT(nomrate, npy)

  • Arguments and should be positive numeric values.
  • should be >0 and should be >1.
  • For invalid arguments, Calci returns an error message.
  • Formula: Effective interest rate is calculated as follows -

<math>r = {1 + /frac{nomrate,npy}/power{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.

See Also

References