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# interest Effective

Finance namespace
Controller: CodeCogs   C++

## InterestEffective

 doubleinterestEffective( double rate int npery )
This function computes the effective annual interest rate, based on the nominal interest rate and the number of compounding periods per year.

It is based on the following equation, where
• rate is the nominal interest rate, and
• npery is the number of compounding periods per year,
expressed as an integer.

### Example 1

#include <stdio.h>
#include <codecogs/finance/banking/interesteffective.h>

int main()
{
int i;
float f = 4.25;

printf("      Rate    NPery   Effective\n");
for (i=3;i<10;++i)
{
printf("    %f      %d      %f\n",f,i,Finance::Banking::interestEffective(f,i));
++f;
}
return 0;
}
Output
Rate          NPery     Effective
4.250000        3       0.043105
5.250000        4       0.053542
6.250000        5       0.064083
7.250000        6       0.074726
8.250000        7       0.085475
9.250000        8       0.096331
10.250000       9       0.107296

If less than or equal to 0, effect will return -1

### Note

It is assumed that no withdrawls are made on the sum.

James Warren (August 2005)

### Parameters

 rate is the nominal interest rate, expressed as a double type.

### Authors

Alwyn Tan (Mar 2005)
##### Source Code

Source code is available when you agree to a GP Licence or buy a Commercial Licence.

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