Difference between revisions of "Documentation/How Tos/Calc: EFFECTIVE function"
From Apache OpenOffice Wiki
< Documentation | How Tos
m (→Issues:) |
m |
||
| (5 intermediate revisions by 4 users not shown) | |||
| Line 1: | Line 1: | ||
| − | __NOTOC__ | + | {{DISPLAYTITLE: EFFECTIVE function}} |
| + | {{Documentation/CalcFunc FinancialTOC | ||
| + | |ShowPrevNext=block | ||
| + | |PrevPage=Documentation/How_Tos/Calc:_DURATION_ADD_function | ||
| + | |NextPage=Documentation/How_Tos/Calc:_EFFECT_ADD_function | ||
| + | }}__NOTOC__ | ||
== EFFECTIVE == | == EFFECTIVE == | ||
| Line 20: | Line 25: | ||
=== Issues: === | === Issues: === | ||
| − | + | * The calculation assumes that interest is credited at the end of exactly equal periods. In reality, different quarter-years, for example, have different numbers of days. | |
| − | * The calculation assumes that interest is credited at the end of exactly equal periods. In reality different quarter-years, for example, have different numbers of days. | ||
| − | {{ | + | {{SeeAlso|EN| |
* [[Documentation/How_Tos/Calc: EFFECT_ADD function|EFFECT_ADD]] | * [[Documentation/How_Tos/Calc: EFFECT_ADD function|EFFECT_ADD]] | ||
* [[Documentation/How_Tos/Calc: NOMINAL function|NOMINAL]] | * [[Documentation/How_Tos/Calc: NOMINAL function|NOMINAL]] | ||
| Line 31: | Line 35: | ||
* [[Documentation/How_Tos/Calc: Financial functions|Financial functions]]}} | * [[Documentation/How_Tos/Calc: Financial functions|Financial functions]]}} | ||
| + | [[Category: Documentation/Reference/Calc/Financial functions]] | ||
Latest revision as of 10:53, 31 January 2024
Depreciation
Payment Streams, Annuities, Loans
Securities
Coupons
Miscellaneous
| < {{#switch:Previous Page | Previous Section = Previous Section | Next Section = Next Section | Previous Page = Previous Page | Next Page = Next Page | }} | {{#switch:Next Page | Previous Section = Previous Section | Next Section = Next Section | Previous Page = Previous Page | Next Page = Next Page | }} > |
EFFECTIVE
Returns the effective compounded interest rate given a nominal interest rate.
Syntax:
EFFECTIVE(nom_rate; num)
- nom_rate: the nominal interest rate.
- num: the number of times interest is credited / compounded during the period that nom_rate applies to.
- If an investment has a nominal rate, say for a year, but interest is paid and credited say each quarter, the interest paid each quarter will itself start earning interest. This increases the effective value. This function returns the effective rate - that is, the rate that would have to be paid at the end of the (say) year to give the same return.
- The formula used is:
- effective_rate = (1 + nom_rate/num)num - 1
Example:
EFFECTIVE(6%; 4)
- returns approximately 6.14%, which is the effective rate of an investment with a nominal rate of 6% per annum, compounded quarterly.
Issues:
- The calculation assumes that interest is credited at the end of exactly equal periods. In reality, different quarter-years, for example, have different numbers of days.
{{#switch:EN
| RU = Смотрите также:
| UA = Дивіться також:
| EN = See Also
| PT = Ver também
| #default = See Also
}}
