EFFECT
Syntax:
EFFECT ( nominal-rate , npery )
Description: Computes the effective annual interest rate, given the nominal annual interest rate and the number of compounding periods per year.
Mathematical Formula:
Arguments:
Name |
Type |
Description |
|---|---|---|
nominal-rate |
number |
The nominal interest rate. |
npery |
number |
The number of compounding periods per year, truncated to integer. |
Return Type and Value: number – The effective annual interest rate.
However, if
nominal-rate ≤ 0,
#NUM!is returned.npery < 1,
#NUM!is returned.
example: