Calculates the annual effective interest rate given the nominal rate and number of compounding periods per year.
Sample Usage
EFFECT(0.99,12)
EFFECT(A2,A3)
Syntax
EFFECT(nominal_rate, periods_per_year)
nominal_rate- The nominal interest rate per year.periods_per_year- The number of compounding periods per year.
See Also
NOMINAL: Calculates the annual nominal interest rate given the effective rate and number of compounding periods per year.
INTRATE: Calculates the effective interest rate generated when an investment is purchased at one price and sold at another with no interest or dividends generated by the investment itself.