# EFFECT

## Content

This function calculates the effective annual interest rate for a given nominal annual interest rate and the number of compounding periods per year.

## Syntax

`EFFECT(nomrate, comper)`

## Arguments

This function has these arguments:

| Argument | Description |
| -------- | ----------- |
| *nomrate* | [Required] Nominal interest rate |
| *comper* | [Required] Number of compounding periods; if not an integer, the number is truncated |

## Remarks

The #VALUE! error is returned if either argument is non-numeric.
The #NUM error is returned if *nomrate* is less than or equal to zero or if *comper* is less than one.
*Comper* is truncated to an integer.

## Examples

`EFFECT(J12,B3)`
`EFFECT(R12C10,R3C2)`
`EFFECT(6.5%,8)` gives the result 0.66878782