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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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