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 (external edit)