Annual Equivalent Rate

To evaluate deeply the revenue of a specific asset, we should take into account the number of times a year that the interest is paid.

So, if you want to know which is the "real" interest rate of a specific asset you can use the following VBA script on Excel.

Sub equivalent_rate()

Dim rate As Double
Dim eq_rate As Double
Dim n As Integer

rate = InputBox("Insert the annual rate in percentage") / 100

n = InputBox("Insert the number of times you receive the interest")

eq_rate = (((1 + rate / n) ^ n) - 1) * 100

MsgBox ("Your equivalent interest rate is " & eq_rate)

End Sub