APR (annual percentage rate)

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APR(rate,periods)

 

APR

Returns the effective annual interest rate.

rate

A numeric constant or variable containing the contracted interest rate.

periods

A numeric constant or variable containing the number of compounding periods per year.

 

The APR function determines the effective annual rate of interest based upon the contracted interest rate (rate) and the number of compounding periods (periods) per year. For example, periods = 2 results in semi-annual compounding. The contracted interest rate is a "non-compounded annual interest rate."

 

Return DataType:     DECIMAL

 

Internal Formulas:

 

Example:

 

PeriodicRate = AnnualInterestRate / (PeriodsPerYear * 100) ! Setup Variables

RealRate = InterestRate / 100

AnnualRate = APR(RealRate,PeriodsPerYear) ! Call APR

AnnualRate *= 100                         ! Normalize Results