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

Sample Usage

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.

To use the EFFECT Formula, simply begin with your edited Excellentable:

Then begin typing the EFFECT formula in the area you would like to display the outcome:

By adding the values you would like to calculate, Excellentable generates the outcome:

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