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effect

Effective annual interest rate from a nominal rate.

v = effect(nominal_rate, npery)

Returns (1 + nominal_rate / npery)^npery - 1 — the effective annual rate for a stated nominal rate compounded npery times per year.

effect(0.0525, 4) % quarterly compounding → ≈ 0.05354
  • nominal — Nominal annual rate from an effective rate.