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effrr

Effective rate of return

Description

Return = effrr(Rate,NumPeriods) calculates the annual effective rate of return. Compounding continuously returns Return equivalent to (e^Rate-1).

example

Examples

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This example shows how to find the effective annual rate of return based on an annual percentage rate of 9% compounded monthly.

Return = effrr(0.09, 12)
Return = 
0.0938

Input Arguments

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Annual percentage rate, specified as a scalar numeric decimal.

Data Types: double

Number of compounding periods per year, specified as a scalar integer.

Data Types: double

Output Arguments

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Annual effective rate of return, returned as a scalar numeric decimal.

Version History

Introduced before R2006a