Manuals/calci/EFFECT
EFFECT(nom rate, npy)
Where ;nom rate' is the nominal interest rate and 'npy' is the number of compounding periods per year.
This function find outs the effective annual interest rate, given the nominal annual interest rate and the number of compounding periods per year.
- Arguments should be numeric.
- EFFECT returns the error value, when nom rate ≤ 0 or npy < 1.
- EFFECT is calculated as follows:
EFFECT
Lets see an example,
EFFECT(nom rate, npy)
B
6%
3
=EFFECT(B2,B3) is 0.0612
Syntax
Remarks
Examples
Description
| Column1 | Column2 | Column3 | Column4 | |
| Row1 | 6% | |||
| Row2 | 3 | |||
| Row3 | 0.061208 | |||
| Row4 | ||||
| Row5 | ||||
| Row6 |
