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)= | |
| − | < | + | where, |
| + | *<math>nomrate</math> is the nominal interest rate, and | ||
| + | *<math>npy</math> is the number of compounding periods per year. | ||
| − | + | EFFECT() calculates the effective annual interest rate. | |
| − | + | == Description == | |
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| − | + | EFFECT(nomrate, npy) | |
| − | </ | + | *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. | |
| − | < | + | *For invalid arguments, Calci returns an error message. |
| + | *Formula: Effective interest rate <math>r</math> is calculated as follows - | ||
| − | + | <math>r = {1 + /frac{nomrate,npy}/power{npy} - 1 | |
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| − | + | == Examples == | |
| − | + | Consider the following example that shows the use of EFFECT function: | |
| − | + | <div id="2SpaceContent" class="zcontent" align="left"> | |
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| − | <div id=" | ||
| − | + | {| id="TABLE3" class="SpreadSheet blue" | |
| + | |- class="even" | ||
| + | | class="sshl_f" | 6% | ||
| + | | class=" " |8.5% | ||
| + | | class=" " | | ||
| − | + | |- class="odd" | |
| − | + | | class="sshl_f" | 3 | |
| − | + | | class=" " |4 | |
| + | | class=" " | | ||
| − | + | |- class="even" | |
| − | + | | class="sshl_f" | | |
| − | + | | class=" " | | |
| − | + | | class=" " | | |
| − | + | |} | |
| − | + | </div> | |
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| − | + | =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 == | |
| − | + | *[[Manuals/calci/RATE | RATE]] | |
| − | + | *[[Manuals/calci/INTRATE | INTRATE]] | |
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| − | + | == References == | |
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| − | + | *[http://en.wikipedia.org/wiki/Effective_interest_rate Effective Interest Rate] | |
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Revision as of 07:28, 23 January 2014
EFFECT(nomrate, npy)
where,
- is the nominal interest rate, and
- is the number of compounding periods per year.
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 -
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.