Returns the effective annual interest rate, given the nominal annual interest rate and the number of compounding periods per year.
The nominal interest rate.
The number of compounding periods per year.
EFFECT is calculated as follows:
To make the following example easier to understand, you can copy the data to a blank sheet and then enter the function underneath the data. Do not select the row or column headings (1, 2, 3... A, B, C...) when you copy the sample data to a blank sheet.