WorksheetFunction.Effect Method (Excel)
Returns the effective annual interest rate, given the nominal annual interest rate and the number of compounding periods per year.
Syntax
expression .Effect(Arg1, Arg2)
expression A variable that represents a WorksheetFunction object.
Parameters
Name |
Required/Optional |
Data Type |
Description |
|---|---|---|---|
Arg1 |
Required |
Variant |
Nominal_rate - the nominal interest rate. |
Arg2 |
Required |
Variant |
Npery - the number of compounding periods per year. |
Return Value
Double
Remarks
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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