[−][src]Function finance_solution::convert_ear_to_apr_solution

pub fn convert_ear_to_apr_solution(
    ear: f64, 
    compounding_periods_in_year: u32
) -> ConvertRateSolution

Convert an EAR to APR. Returns solution struct with additional information and functionality.

Related Functions:

  • ear general-purpose macro to convert EAR into all rate variations.
  • convert_ear_to_apr to convert EAR to APR and return an f64 value.

The formula is:

Note: This formula involves converting the EAR to EPR first, and then converting the EPR to APR.

Arguments

  • rate - The input rate, expressed as a floating point number. For instance 0.05 would mean 5%. Often appears as r or i in formulas.
  • periods - The number of compounding periods in a year. Often appears as n or t.

Panics

  • periods - must be a u32 value greater than 0.

Example

Convert effective annual rate (EAR) to annual percentage rate (APR).

use finance_solution::*;
// The effective annual rate is 3.453486936028982%
let effective_annual_rate = 0.03453486936028982;

// There are 12 compounding periods per year.
let periods = 12;

let ear_to_apr_solution = convert_rate::convert_ear_to_apr_solution(effective_annual_rate, periods);
 
// Confirm that the APR is correct.
assert_approx_equal!(0.034, ear_to_apr_solution.apr());