EFFECT
Returns the effective annual interest rate.
FinancialFinance & Accounting
What it does
Calculates effective annual interest rate given nominal rate and compounding periods.
Syntax
EFFECT(nominal_rate, npery)
Arguments
nominal_rate(number) — The nominal interest rate.npery(number) — Number of compounding periods per year.
Examples
Effective Rate
Effective rate of 10% compounded monthly.
FORMULA
=EFFECT(0.10, 12)
RESULT
0.1047
SAMPLE DATA
| A | |
|---|---|
| 1 | Result |
| 2 | 0.1047 |