WorksheetFunction.Effect Method

  • Article
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:

    Equation

See Also