Excel describes EFFECT - Returns the effective annual interest rate, given the nominal
annual interest rate and the number of compounding periods per year.
The syntax of EFFECT is EFFECT(nominal_rate, npery).
Nominal Rate - Annual Interest Rate
npery - Compounding periods in a Year. For monthly payments, it is 12. For quarterly
payments, it is 4.
In the below picture, the effective interest rate is 12.68% for a monthly payment. This may
be a small difference for a year or two, but if you take mortgage on housing which is say for
20 years, this makes hell of a difference.
The formula used is =EFFECT(B1,B2)
Now, if you are making an investment and making monthly payments, you will be getting
annual return of 12.68% against 12% if you make yearly payment.
The effective interest rate calculator can be downloaded from
http://eforexcel.com/wp/wp-content/uploads/2014/12/Effective-Interest-
Calculator.xlsx
64. Abbreviate Given Names
If you have names given like -
Smith Johnson
Liz lotte
Christy tiara Lewisk
John
And you need to produce abbreviations or acronyms for them like below in all capitals
Smith Johnson - SJ
Liz lotte - LT
Christy tiara Lewisk - CTL
john - J
Then you can use following formula for the same for upto 3 words in the name -
