This function calculates the effective annual interest rate for a given nominal annual interest rate and the number of compounding periods per year.
This function has these arguments:
Nominal interest rate
Number of compounding periods; if not an integer, the number is truncated
The #VALUE! error is returned if either argument is non-numeric.
The #NUM error is returned if nomrate is less than or equal to zero or if comper is less than one.
Comper is truncated to an integer.
Accepts numeric data for both arguments. Returns numeric data.
EFFECT(6.5%,8) gives the result 0.66878782