Explanation
The Effective Annual Rate (EAR) is the interest rate after factoring in compounding.
The EFFECT function returns the calculated EAR for each of the given periods.
This formula is used to check the results from EFFECT.
Effective annual interest rate is the interest rate actually earned due to compounding.
RRI Function
The Excel RRI function returns an equivalent interest rate for the growth of an investment.
it’s possible for you to use RRI to calculate Compound Annual Growth Rate (CAGR) in Excel.
