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ReferenceFunctionsFinancial Functions

EFFECT

Converts a nominal annual rate into an effective annual rate.

Summary

This is useful when nominal APR is quoted with periodic compounding and you need annualized yield including compounding effects.

Remarks

  • nominal_rate is annual; npery is compounding periods per year.
  • npery is truncated to an integer before computation.
  • Sign convention is not cash-flow based; this function transforms rate conventions only.
  • Returns #NUM! when nominal_rate <= 0 or npery < 1.
  • Result formula: (1 + nominal_rate / npery)^npery - 1.

Examples

Example
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Example
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CellValue
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Formula
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Result
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FAQ

Does EFFECT accept fractional compounding periods?

npery is truncated to an integer first; values less than 1 (or non-positive nominal_rate) return #NUM!.

Runtime metadata

Category

Financial

Signature

EFFECT(arg1: Number, arg2: Number)

Arity

min 2, max 2

Arguments

arg1

Number · Scalar · coercion NumberLenientText

arg2

Number · Scalar · coercion NumberLenientText

Caps

PURE

Source

crates/formualizer-eval/src/builtins/financial/tvm.rs

DOLLARFR

DOLLARFR: Converts a decimal dollar value into fractional-dollar notation.

FV

FV: Calculates future value from a fixed periodic rate and payment stream.

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SummaryRemarksExamplesRelated functionsFAQDoes EFFECT accept fractional compounding periods?Runtime metadata