Knowledge Base

Formula for EFFECT Function Incorrect in Help

Article ID: 149232

Article Last Modified on 10/10/2006

Microsoft Excel 95a
Microsoft Excel 5.0c
Microsoft Excel 5.0a for Macintosh

This article was previously published under Q149232

SYMPTOMS

In the versions of Microsoft Excel listed above, the online Help entries for the EFFECT and NOMINAL functions state that EFFECT is calculated using the following formula:

   EFFECT = ( 1 + Nominal_Rate / Npery ) ^ ( Npery - 1 )

MORE INFORMATION

This information is incorrect. The function is actually calculated using this formula:

   EFFECT = ( ( 1 + Nominal_Rate / Npery ) ^ Npery ) - 1

For more information about the EFFECT function, click the Index tab in Microsoft Excel Help, type the following text

EFFECT

and then double-click the selected text to go to the "EFFECT" topic.

Additional query words: 5.00a 5.00c 7.00a XL5 XL7 XL

Keywords: kbfix kbprogramming KB149232