IFinance.Effect

Syntax

Effect(NominalRate: Double; PeriodCount: Integer): Double;

Parameters

Parameters Description Constraints
NominalRate Nominal annual interest rate. Cannot be negative.
PeriodCount The number of periods in a year, for which compound interest is calculated. Must be positive.

Description

The Effect method returns effective annual percentage rate.

Comments

Effect is calculated using the following formula:

Example

To execute the example, add a link to the MathFin system assembly.

Sub UserProc;
Var
    r: Double;
Begin
    r := Finance.Effect(0.25, 4);
    Debug.WriteLine(r);
End Sub UserProc;

After executing the example the console window displays effective annual percentage rate equal to 0.2744.

See also:

IFinance