EFFECT function
EFFECT(Rate,
NumberOfPeriods) EFFECT(Rate;
NumberOfPeriods)
Rate
Number or { Number }
The nominal interest rate.
NumberOfPeriods
Number or { Number }
The number of times interest is credited or compounded during the period that the rate parameter applies to.
Returns
Number or { Number }
The effective compounded interest rate.
Returns the effective compounded interest rate given a nominal interest rate.
Example
EFFECT(0.0525,
4)EFFECT(0,0525;
4)
Returns roughly 5.35%, which is the effective compounded interest rate, with four periods per year and a nominal interest rate of 5.25%.
Partly derived from the OpenOffice.org documentation, licensed
under the Apache License 2.0.