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.