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brfinance (version 0.8.0)

calc_effective_rate: Effective Interest Rate

Description

Converts a nominal interest rate into an effective rate.

Usage

calc_effective_rate(nominal_rate, m)

Value

Effective interest rate.

Arguments

nominal_rate

Nominal interest rate (decimal).

m

Number of compounding periods per year.

Examples

Run this code
calc_effective_rate(nominal_rate = 0.12, m = 12) # 12% nominal monthly

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