Returns the effective annual interest rate.

Namespace: Imsl.Finance
Assembly: ImslCS (in ImslCS.dll) Version: 6.5.0.0

Syntax

C#
public static double Effect(
	double nominalRate,
	int nper
)
Visual Basic (Declaration)
Public Shared Function Effect ( _
	nominalRate As Double, _
	nper As Integer _
) As Double
Visual C++
public:
static double Effect(
	double nominalRate, 
	int nper
)

Parameters

nominalRate
Type: System..::.Double
A double which specifies the nominal interest rate.
nper
Type: System..::.Int32
A int which specifies the number of compounding periods per year.

Return Value

A double which specifies the effective annual interest rate.

Remarks

The nominal interest rate is the periodically-compounded interest rate as stated on the face of a security. The effective annual interest rate is computed using the following:

\left( {1 + {{\it nominalRate} \over {\it nper}}} \right)^{\it nper} - 1

See Also