I get wrong result when details for effect function are entered i.

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Guest

I am trying to calculate effective rate of interest on investments by using
EFFECT function in EXCEL2002(office XP Professional) . I do not get the
result as set out in the excel example or as per the actual and correct
formula worked out on the financial calculator. Its strange as the formula
set out for EFFECT is correct but the function does not give the correct
answer. for e.g if nominal rate of interest (NIR)is 9%p.a. and compounding
period in a year is 2 then it should give me an effective interest rate of
9.2%p.a. Where as I get an answer as 9.56%. It becomes more wierd when the
NIR is 9% and compounding period is 12 the answer I get is 1.0699 instead of
9.38%. Can anyone help
 
Hi Alok,

I tried the effect function and the examples you gave. They work
perfectly here. I have office 2003

Mangesh
 
Post the actual formula you are using so we can take a look at it.
 
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