EFFECT

Annual effective interest rate

Description
Calculates annual effective interest rate when provided with the nominal rate and the number of compounding periods per year.
Function signature
EFFECT(nominalrate: Number, periodsperyear: Number) => Number
Parameter
Description
Nominal rate
The nominal interest rate per year
Periods per year
The number of compounding periods per year
Examples
Formula
Return value
EFFECT(0.001, 4)
0.001000375063
EFFECT(0.1, 4)
0.1038128906
EFFECT(0.5, 4)
0.6018066406
EFFECT(1, 4)
1.44140625
EFFECT(0.5, 6)
0.6164885679

DOUBLE_DECLINING_BALANCE

FUTURE_VALUE

Last updated 11 months ago

Formula	Return value
`EFFECT(0.001, 4)`	`0.001000375063`
`EFFECT(0.1, 4)`	`0.1038128906`
`EFFECT(0.5, 4)`	`0.6018066406`
`EFFECT(1, 4)`	`1.44140625`
`EFFECT(0.5, 6)`	`0.6164885679`

Parameter	Description
Nominal rate	The nominal interest rate per year
Periods per year	The number of compounding periods per year