[−][src]Function finance_solution::convert_apr_to_ear_solution
pub fn convert_apr_to_ear_solution(
apr: f64,
compounding_periods_in_year: u32
) -> ConvertRateSolution
Convert an APR to EAR (effective annual rate). Returns a custom type with additional functionality and extra information available in the dbg!().
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_ear
to convert APR to EAR and return the f64 value instead of a solution struct.
The formula:
Arguments
rate
- The input rate, expressed as a floating point number. For instance 0.05 indicates 5%. Often appears asr
ori
in formulas.compounding_periods_in_year
- The number of compounding periods in a year. Often appears asn
ort
. Must be u32.
Panics
periods
- must be a u32 value greater than 0.
Example
/// Convert annual rate to effective annual rate.
use finance_solution::*; // The annual percentage rate is 3.4%. let nominal_rate = 0.034; // There are 12 compounding periods per year (monthly compounding). let periods = 12; let effective_annual_rate = convert_apr_to_ear_solution(nominal_rate, periods).ear(); // Confirm that the EAR is correct. assert_approx_equal!(0.034535, effective_annual_rate);