Documentation/Calc Functions/EFFECT ADD

Function name:
EFFECT_ADD

Category:
Financial Analysis

Summary:
Calculates the effective(net) annual rate of interest on the basis of the nominal interest rate and the number of interest payments per annum.

Nominal interest refers to the amount of interest due at the end of a calculation period. Effective interest increases with the number of payments made. In other words, interest is often paid in installments (for example, monthly or quarterly) before the end of the calculation period.

Syntax:
EFFECT_ADD(NominalRate; NPerY)

Returns:
Returns a non-negative real number(expressed as a percentage) which is the effective annual interest rate where the nominal interest rate is NominalRate and the number of compounding periods per year is NPerY.

Arguments:
NominalRate is either a non-negative real number (expressed as a percentage or a fraction) or a reference to the cell containing that number which is the nominal interest rate.

NPerY is a positive integer value or a reference to the cell containing that number which is the number of interest payment periods per year.


 * If NominalRate is less than 0 then the function returns an error value.
 * If NPerY is not an integer value, then it is truncated to an integer.
 * If after truncation NPerY is less than 1 then the function returns an error value.

Additional details:

 * The formula for EFFECT_ADD is:

where Rate is NominalRate and Payments is NPerY.

Related LibreOffice functions:
[[Special:MyLanguage/Documentation/Calc_Functions/EFFECT EFFECT]

[[Special:MyLanguage/Documentation/Calc_Functions/NOMINAL NOMINAL]

[[Special:MyLanguage/Documentation/Calc_Functions/NOMINAL_ADD NOMINAL_ADD]

ODF standard:
None

Equivalent Excel functions:
None