September 2011
Beginner
140 pages
3h 40m
English
book
Beginning OpenOffice Calc: From Setting Up Simple Spreadsheets to Business Forecasting
by Jacek Artymiak
Content preview from Beginning OpenOffice Calc: From Setting Up Simple Spreadsheets to Business Forecasting
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Effective Rate of Interest (EFFECTIVE)
Syntax: EFFECTIVE(Nominal; Periods)
The EFFECTIVE function returns the effective annual rate of interest for the nominal rate of interest and the number of payment periods (typically months if the nominal rate is an annual rate). So, if you want to check the effective rate of interest for a nominal rate of 10%, assuming 12 monthly payments, use
=EFFECTIVE(10%; 12)
This returns 10.47%.
Figure 8-4. Sample result of the EFFECTIVE function
The opposite of this function is NOMINAL.
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