Function finance_solution::convert_ear_to_epr_solution

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

Convert an EAR (Effective Annual Rate) to periodic rate (also known as EPR). Returns a solution struct with additional information and functionality. /// Related Functions:

• convert_ear_to_epr to convert EAR to EPR and return a single f64 value.

The formula is:

or this formula can be re-written as:

Arguments

• ear - The input rate (effective annual 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 or equal to 1.

Example

Convert effective annual rate to periodic rate.

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 ear_to_epr_solution = convert_rate::convert_ear_to_epr_solution(effective_annual_rate, periods);
 
// Confirm that the EPR is correct.
assert_approx_equal!(0.00283333, ear_to_epr_solution.epr());