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Return = effrr(Rate, NumPeriods)
Rate | Annual percentage rate. Enter as a decimal fraction. |
NumPeriods | Number of compounding periods per year, an integer. |
Return = effrr(Rate, NumPeriods) calculates the annual effective rate of return. Compounding continuously returns Return equivalent to (e^Rate-1).
Find the effective annual rate of return based on an annual percentage rate of 9% compounded monthly.
Return = effrr(0.09, 12)
returns
Return =
0.0938 or 9.38%
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