WorksheetFunction.Effect Method
| Excel Developer Reference |
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:
.gif "Equation")
See Also