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 Microsoft Excel > Functions > Financial > EFFECT
 

EFFECT(nominal_rate, npery)

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

 nominal_rateThe nominal interest rate.
 nperyThe number of compounding periods per year.

 REMARKS
 
  		• This function is only available if you have the Analysis ToolPak add-in installed.
     
  		• If any of the arguments are not numeric, then #VALUE! is returned.
     
  		• If "nominal_rate" = 0, then #NUM! is returned.
     
  		• If "npery" is not an integer, it is truncated.
     
  		• If "npery" < 1, then #NUM! is returned.
     
  		• The annual interest rate is calculated with the following formula: ??

     EXAMPLES
     
     A
    1=EFFECT(2,2) = 3
    2=EFFECT(2,3) = 4
    3=EFFECT(3,3) = 7
    4=EFFECT(10,5) = 242
    5=EFFECT(10,5.75) = 242
    6=EFFECT(5.25,-2) = #NUM!
    7=EFFECT(5.25,"some text") = #VALUE!
    8=EFFECT("some text",4) = #VALUE!
    		 
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