How to Use EFFECT() in Google Sheets

Description

Calculates the annual effective interest rate given the nominal rate and number of compounding periods per year.

How To Actually Use EFFECT() in Sheets

EFFECT(nominal_rate, periods_per_year)

Try EFFECT yourself

In cells A1 and A2, enter the nominal interest rate and the number of compounding periods per year, respectively. In cell A3, use the EFFECT formula to calculate the annual effective interest rate.

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