package com.imsl.test.example.finance;

import com.imsl.finance.*;
import java.text.NumberFormat;

/**
 * <p>
 * Computes the effective rate from a nominal rate compounded quarterly.</p>
 *
 * In this example the effective interest rate is computed given that the
 * nominal rate is 6.0% and that the interest will be compounded quarterly.
 *
 * @see <a href="FinanceEffectEx1.java">Code</a>
 * @see <a href="doc-files/FinanceEffectEx1.out">Output</a>
 */
public class FinanceEffectEx1 {

    public static void main(String args[]) {
        double nominalRate = .06;
        int nper = 4;
        double effectiveRate;

        effectiveRate = Finance.effect(nominalRate, nper);
        NumberFormat nf = NumberFormat.getPercentInstance();
        nf.setMaximumFractionDigits(2);
        System.out.println("The effective rate of the nominal rate, 6.0%, "
                + "compounded quarterly is " + nf.format(effectiveRate));
    }
}