Difference between revisions of "Manuals/calci/EFFECT"
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| − | =EFFECT( | + | <div style="font-size:30px">'''EFFECT (NominalInterestRate,CompoundingPeriodsPerYear)'''</div><br/> |
where, | where, | ||
| − | *<math> | + | *<math>NominalInterestRate</math> is the nominal interest rate, and |
| − | *<math> | + | *<math>CompoundingPeriodsPerYear</math> is the number of compounding periods per year. |
| − | EFFECT() | + | EFFECT(), returns the effective annual interest rate. |
== Description == | == Description == | ||
| − | EFFECT( | + | EFFECT (NominalInterestRate,CompoundingPeriodsPerYear) |
| − | *Arguments <math> | + | *Arguments <math>NominalInterestRate</math> and <math>npy</math> should be positive numeric values. |
| − | *<math> | + | *<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 - | ||
Revision as of 15:59, 23 July 2018
EFFECT (NominalInterestRate,CompoundingPeriodsPerYear)
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(), returns the effective annual interest rate.
Description
EFFECT (NominalInterestRate,CompoundingPeriodsPerYear)
- 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 -
should be positive numeric values.
should be >0 and 
is calculated as follows -
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 0.08774796172119137 as a result.
=EFFECT("6%",4): Displays 0.06136355062499965 as a result.
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References