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EXCEL EFFECT FUNCTION
Excel EFFECT Function Introduction
For a given nominal interest rate and number of compounding periods each year, the Excel Effect function returns the effective yearly interest rate.
Description of Excel EFFECT Function
Syntax:
=EFFECT( nominal_rate, npery )
Parameter:
- The following are the arguments:
nominal interest rate: –
- The nominal interest rate (must be a numeric value, between 0 and 1).
npery –
- The annual number of compounding periods (must be a positive integer).
Step By Step Guide of EFFECT Function
Example :
The spreadsheet below offers three Excel Effect Function examples:
Key Points
- #NUM! – Occurs if either the nominal rate or the npery provided is 0 or 1.
- #VALUE! – Occurs if one or both of the supplied arguments is not a number.
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