Returns the effective interest rate given a nominal interest rate and compounding frequency.
|nominal_rate||The interest rate for the year.|
|npery||The number of compounding periods per year.|
|* This function is closely related to the NOMINAL function.|
* An effective interest rate is an interest rate that is compounded annually making it easy to compare different interest rates.
* The Effective Rate is also known as the Annual Rate, Effective Annual Rate (EAR) or Annual Equivalent Rate (AER).
* If any of the arguments are not numeric, then #VALUE! is returned.
* The "nominal rate" can either be entered with a percentage sign or as a decimal.
* If "nominal_rate" = 0, then #NUM! is returned.
* If "npery" is not an integer, it is truncated.
* If "npery" < 1, then #NUM! is returned.
* For an illustrated example refer to the Interest Rates > Effective Interest page.
* In Excel 2007 the accuracy of this function was improved.
* In Excel 2003 this function was only available when you had the Analysis ToolPak add-in loaded.
* For the Microsoft documentation refer to support.office.com
|1 - If you have an nominal interest rate of 5% compounded annually, what is the effective interest rate.|
2 - This is the same as 1.
3 - If you have an nominal interest rate of 5% compounded semi-annually, what is the effective interest rate.
4 - If you have an nominal interest rate of 5% compounded monthly, what is the effective interest rate.
5 - If you have an nominal interest rate of 5% compounded daily, what is the effective interest rate.
6 - where "nominal" > 1
7 - what if npery < 0
8 - what if "nominal_rate" is not numeric
9 - what if "npery" is not numeric
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