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Formula for EFFECT Function Incorrect in Help

This article was previously published under Q149232
This article has been archived. It is offered "as is" and will no longer be updated.
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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