Formula for EFFECT Function Incorrect in Help
This article was previously published under Q149232
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In the versions of Microsoft Excel listed above, the online Help entriesfor the EFFECT and NOMINAL functions state that EFFECT is calculated usingthe following formula:
EFFECT = ( 1 + Nominal_Rate / Npery ) ^ ( Npery - 1 )
This information is incorrect. The function is actually calculated usingthis formula:
EFFECT = ( ( 1 + Nominal_Rate / Npery ) ^ Npery ) - 1
For more information about the EFFECT function, click the Index tab inMicrosoft Excel Help, type the following text
and then double-click the selected text to go to the "EFFECT" topic.
5.00a 5.00c 7.00a XL5 XL7 XL
Article ID: 149232 - Last Review: 09/30/2013 20:46:20 - Revision: 1.3
Microsoft Excel 95a, Microsoft Excel 5.0c, Microsoft Excel 5.0a for Macintosh
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