EQUIV

Definition: EQUIV is a function that returns the annual interest rate for an investment that pays interest at different intervals.

Syntax: =EQUIV(nominal_rate, npery1, npery2)

Situation: This formula is suitable when you need to find the annual interest rate for an investment that pays interest at different intervals.

Example: Suppose you have a savings account that compounds interest monthly at a nominal rate of 5%. The equivalent annual interest rate for quarterly payments can be found using the formula =EQUIV(0.05, 12, 4), which returns 5.116%.