Difference between revisions of "Documentation/How Tos/Calc: EFFECT ADD function"
From Apache OpenOffice Wiki
< Documentation | How Tos
(Initial content) |
m |
||
(11 intermediate revisions by 5 users not shown) | |||
Line 1: | Line 1: | ||
− | __NOTOC__ | + | {{DISPLAYTITLE: EFFECT_ADD function}} |
+ | {{Documentation/CalcFunc FinancialTOC | ||
+ | |ShowPrevNext=block | ||
+ | |PrevPage=Documentation/How_Tos/Calc:_EFFECTIVE_function | ||
+ | |NextPage=Documentation/How_Tos/Calc:_INTRATE_function | ||
+ | }}__NOTOC__ | ||
== EFFECT_ADD == | == EFFECT_ADD == | ||
Line 5: | Line 10: | ||
=== Syntax: === | === Syntax: === | ||
− | <tt>'''EFFECT_ADD( | + | <tt>'''EFFECT_ADD(nom_rate; num)'''</tt> |
− | : <tt>''' | + | : <tt>'''nom_rate'''</tt>: the nominal interest rate. |
− | : <tt>'''num'''</tt>: the number of times interest is credited / compounded during the period that <tt>''' | + | : <tt>'''num'''</tt>: the number of times interest is credited / compounded during the period that <tt>'''nom_rate'''</tt> applies to. |
− | If an investment has a nominal rate, say for a year, but interest is paid and credited say each quarter, the interest paid each quarter will itself start earning interest. This increases the effective value. This function returns the effective rate - that is, the rate that would have to be paid at the end of the (say) year to give the same return. | + | :If an investment has a nominal rate, say for a year, but interest is paid and credited say each quarter, the interest paid each quarter will itself start earning interest. This increases the effective value. This function returns the effective rate - that is, the rate that would have to be paid at the end of the (say) year to give the same return. |
− | The formula used is: | + | :The formula used is: |
− | effective_rate = | + | :effective_rate = (1 + nom_rate/num)<sup>num</sup> - 1 |
=== Example: === | === Example: === | ||
Line 19: | Line 24: | ||
: returns approximately <tt>'''0.0614'''</tt>, which is the effective rate of an investment with a nominal rate of 6% per annum, compounded quarterly. | : returns approximately <tt>'''0.0614'''</tt>, which is the effective rate of an investment with a nominal rate of 6% per annum, compounded quarterly. | ||
− | === | + | === Issues: === |
− | + | * According to the draft ODFF standard, this function will be replaced with a new '''EFFECT''' function. | |
− | + | * The calculation assumes that interest is credited at the end of exactly equal periods. In reality, different quarter-years, for example, have different numbers of days. | |
− | + | ||
− | + | {{SeeAlso|EN| | |
+ | * [[Documentation/How_Tos/Calc: EFFECTIVE function|EFFECTIVE]] | ||
+ | * [[Documentation/How_Tos/Calc: NOMINAL function|NOMINAL]] | ||
+ | * [[Documentation/How_Tos/Calc: NOMINAL_ADD function|NOMINAL_ADD]] | ||
− | [[Documentation/How_Tos/Calc: Financial | + | * [[Documentation/How_Tos/Calc: Derivation of Financial Formulas|Derivation of Financial Formulas]] |
− | + | * [[Documentation/How_Tos/Calc: Financial functions|Financial functions]] | |
− | * | + | |
− | * | + | * [[Documentation/How_Tos/Calc: Functions listed alphabetically|Functions listed alphabetically]] |
+ | * [[Documentation/How_Tos/Calc: Functions listed by category|Functions listed by category]]}} | ||
+ | [[Category: Documentation/Reference/Calc/Financial functions]] |
Latest revision as of 10:55, 31 January 2024
- Financial FunctionsDepreciation
- AMORDEGRCAMORLINCDBDDBSLNSYDVDBPayment Streams, Annuities, Loans
- CUMIPMTCUMIPMT_ADDCUMPRINCCUMPRINC ADDFVFVSCHEDULEIPMTIRRISPMTMIRRNPERNPVPMTPPMTPVRATERRIXIRRXNPVSecurities
-