EFFECT

  • Updated

Calculates the effective annual interest rate, given nominal annual interest rate and number of compounding periods per year.

Sample Usage

EFFECT(1,10)
EFFECT(C5,C6)
 

Syntax

EFFECT(nominal_rate, frequency)

  • nominal_rate - The annualized rate of interest.
  • frequency - The number of interest payments per year.

 

Examples

EFFECT(1,10) returns 1.5937 - the effective annual interest rate for the given nominal interest rate and number of compounding periods per year.