**Public Function Effect( _
ByVal vNominalRate As Variant _
, ByVal vPeriodsPerYear As Variant _
) As Variant**

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

**Example:** Effect(.055, 4) = 0.0561448091821286
Effect(.055, 12) = 0.056407860385536
Effect(.055, 365) = 0.0565362369937314

See the EffectVerify Subroutine for more examples of this Function.

**See also:** Nominal Function
EFFECT Function (Microsoft Excel)

**vNominalRate:** Nominal annual interest rate. Must be greater than zero (>0), otherwise this function returns Null.

**vPeriodsPerYear:** Number of compounding periods per year. vPeriodsPerYear is truncated to an integer number, and the result must be greater than or equal to one (>=1), otherwise this function will return Null.

**v2.0 Addition:** This function is new to this version of Entisoft Tools. Copyright 1996-1999 Entisoft

Entisoft Tools is a trademark of Entisoft.