EFFECT Function (Effective Annual Interest Rate) - SQL Server

EFFECT.sql

/** 
 * Effective Annual Interest Rate
 * (SQL Server) 
 * AzsaturnDx (2020) - No copyright at all
 *
 * Returns the effective annual interest rate, given the nominal annual interest rate and the number of compounding periods per year.
 *
 * @Rate FLOAT - Required. The nominal interest rate.
 * @Periods INT - Required. The number of compounding periods per year.
 * @return FLOAT Effective Annual Interest Rate.
 *
 * @Example
 * 	  SELECT dbo.EFFECT(0.452166555,52)
 *
 * More financial functions are available @: https://gist.github.com/Azsaturndx/8ce3e47e2d3210a65fc83b09ac32da5f
 */

CREATE FUNCTION EFFECT(
	@Rate FLOAT
	,@Periods INT
	)
RETURNS FLOAT
AS  
BEGIN 
	IF (@Rate <= 0) OR (@Periods < 1) RETURN 0
	RETURN POWER( 1 + @Rate / @Periods, @Periods) - 1 
END