apr_annual_percentage_rate_.htm
| Navigation: Templates > Guide to all Templates > Additional Libraries and Templates > Finance Library >====== APR (annual percentage rate) ====== |    |
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
apr_annual_percentage_rate_.htm.txt · Last modified: 2021/04/15 15:56 by 127.0.0.1