[−][src]Function finance_solution::convert_apr_to_epr

pub fn convert_apr_to_epr(apr: f64, compounding_periods_in_year: u32) -> f64

Convert APR (annual rate) to periodic rate. Returns f64.

Related Functions:

  • apr macro to convert APR to all forms of rate conversion, and return a custom type with additional functionality and extra information available in the dbg!().
  • convert_apr_to_epr_solution to convert APR to EPR and return a custom type with additional functionality and extra information available in the dbg!().

The formula:

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.
  • compounding_periods_in_year - The number of compounding periods in a year. Often appears as n or t.

Panics

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

Example

Convert annual rate to periodic rate.

use finance_solution::*;
// The annual percentage rate is 3.4%.
// There are 12 compounding periods per year.
let nominal_rate = 0.034;
let periods = 12;

let periodic_rate = convert_apr_to_epr(nominal_rate, periods);
 
// Confirm that the periodic value is correct to six decimal places.
assert_approx_equal!(0.00283333, periodic_rate);