Effective rate of return
Return = effrr(Rate,NumPeriods)
Annual percentage rate. Enter as a decimal fraction.
Number of compounding periods per year, an integer.
Return = effrr(Rate,NumPeriods) calculates
the annual effective rate of return. Compounding continuously returns
This example shows how to find the effective annual rate of return based on an annual percentage rate of 9% compounded monthly.
Return = effrr(0.09, 12)
Return = 0.0938