[−][src]Function finance_solution::convert_ear_to_apr
pub fn convert_ear_to_apr(ear: f64, compounding_periods_in_year: u32) -> f64
Convert an EAR to APR. Returns f64.
Related Functions:
ear
to convert EAR to all forms of rate conversion, and return a custom type with additional functionality and extra information available in the dbg!().convert_ear_to_apr_solution
to convert EAR to APR and return a custom type with additional functionality and extra information available in the dbg!().
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 asr
ori
in formulas.periods
- The number of compounding periods in a year. Often appears asn
ort
.
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 3.4534% // There are 12 compounding periods per year. let effective_annual_rate = 0.03453486936; let periods = 12; let nominal_rate = convert_rate::convert_ear_to_apr(effective_annual_rate, periods); // Confirm that the APR is correct. assert_approx_equal!(0.034, nominal_rate);