Documentation/Calc Functions/EFFECT ADD
Calculates the effective annual rate of interest on the basis of the nominal interest rate and the number of interest payments per annum.
EFFECT_ADD(Nominal Rate; NPerY)
Nominal Rate is the annual nominal rate of interest.
NPerY is the number of interest payments per year.
The functions whose names end with _ADD or _EXCEL2003 return the same results as the corresponding Microsoft Excel 2003 functions without the suffix. Use the functions without suffix to get results based on international standards.
What is the effective annual rate of interest for a 5.25% nominal rate and quarterly payment.
=EFFECT_ADD(0.0525;4) returns 0.053543 or 5.3543%.