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EFFECT Function

The EFFECT function is one of the financial functions. It is used to calculate the effective annual interest rate for a security based on a specified nominal annual interest rate and the number of compounding periods per year.

Syntax

EFFECT(nominal_rate, npery)

The EFFECT function has the following arguments:

Argument Description
nominal_rate The nominal annual interest rate of the security.
npery The number of compounding periods per year.

Notes

How to apply the EFFECT function.

Examples

The figure below displays the result returned by the EFFECT function.

EFFECT Function

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