Calculate '"effective rate"

Question

Calculate '"effective rate"

Stefan Bengtsson

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Points: 468
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April 8, 2008 at 9:36 am

#74876

Please, someone:-)
If i have the rate 0.5597% and want the yearly effective rate
How do i do that i t-sql
I now the answer, i looked in excel. It should be 6.9268%
Best regards
Stefan

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Matt Miller (4) SSC Guru Points: 124210 More actions · Answer 1

Stefan Bengtsson (4/8/2008)
Please, someone:-)
If i have the rate 0.5597% and want the yearly effective rate
How do i do that i t-sql
I now the answer, i looked in excel. It should be 6.9268%
Best regards
Stefan

I'm thinking that actually should be 6.92706%.

You have to apply compound interest rules to get there.

here is the formula as I understand it:

declare @pct float(53)

set @pct=.005597

declare @result float(53)

set @result=power((@pct+1),12)-1

select @result

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Your lack of planning does not constitute an emergency on my part...unless you're my manager...or a director and above...or a really loud-spoken end-user..All right - what was my emergency again?

Stefan Bengtsson SSC-Addicted Points: 468 More actions · Answer 2

Thanks Matt!

That solved my problem

You are the best:-)