<!DOCTYPE html> <html> <head> <title>EFFECT Function</title> <meta charset="utf-8" /> <meta name="description" content="" /> <link type="text/css" rel="stylesheet" href="../editor.css" /> <script type="text/javascript" src="../callback.js"></script> <script type="text/javascript" src="../search/js/page-search.js"></script> </head> <body> <div class="mainpart"> <div class="search-field"> <input id="search" class="searchBar" placeholder="Search" type="text" onkeypress="doSearch(event)"> </div> <h1>EFFECT Function</h1> <p>The <b>EFFECT</b> function is one of the financial functions. It is used to calculate the effective annual interest rate for a security based on a specified nominal annual interest rate and the number of compounding periods per year.</p> <p>The <b>EFFECT</b> function syntax is:</p> <p style="text-indent: 150px;"><b><em>EFFECT(nominal-rate, npery)</em></b></p> <p><em>where</em></p> <p style="text-indent: 50px;"><b><em>nominal-rate</em></b> is the nominal annual interest rate of the security.</p> <p style="text-indent: 50px;"><b><em>npery</em></b> is the number of compounding periods per year.</p> <p>The numeric values can be entered manually or included into the cell you make reference to.</p> <p>To apply the <b>EFFECT</b> function,</p> <ol> <li>select the cell where you wish to display the result,</li> <li>click the <b>Insert function</b> <img alt="Insert function icon" src="../images/insertfunction.png" /> icon situated at the top toolbar, <br />or right-click within a selected cell and select the <b>Insert Function</b> option from the menu, <br />or click the <img alt="Function icon" src="../images/function.png" /> icon situated at the formula bar, </li> <li>select the <b>Financial</b> function group from the list,</li> <li>click the <b>EFFECT</b> function,</li> <li>enter the required arguments separating them by commas,</li> <li>press the <b>Enter</b> button.</li> </ol> <p>The result will be displayed in the selected cell.</p> <p style="text-indent: 150px;"><img alt="EFFECT Function" src="../images/effect.png" /></p> </div> </body> </html>