Returns the effective annual interest rate, given the nominal annual interest rate and the number of compounding periods per year.
Nominal_rate is the nominal interest rate.
Npery is the number of compounding periods per year.
- Npery is truncated to an integer.
- If either argument is nonnumeric, EFFECT returns the #VALUE! error value.
- If nominal_rate ≤ 0 or if npery < 1, EFFECT returns the #NUM! error value.
- EFFECT is calculated as follows:
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||Nominal interest rate
||Number of compounding periods per year
||Effective interest rate with the terms above (0.053543 or 5.3543 percent)