MarginOpt | ||||||||
Data Type: Float (Optional) | ||||||||
Either a Float number (ie not an integer), or the variable can be omitted. If the value is a string, the function will attempt to convert it to a number, using the part of the string from the start to the first non-numeric character (ie not one of 0123456789+-*/^). | ||||||||
Use of MarginOpt: This is a tricky little variable because it copes with a slightly out of the ordinary situation where the interest on rolled up interest is compounded at a rate which excludes the margin. If you are unsure at all you can, and should, miss it out this variable in the overwhelming majority of situations where you are just converting an interest rate with one compounding frequency to another with a different compounding frequency, or some other interest rate measure. If you do decide to use MarginOpt, be aware that it is doing something inherently unusual, which is to apply a different interest rate to the accrued interest (ie interest on interest), as opposed to the principal (balance). Specifically, it is only compounding the accrued interest at the the basic simple interest rate specified, which of course excludes the margin. The interest charged on the principal, of course, includes the margin on top of the basic simple interest rate. With the interest rate conversion functions that use MarginOpt, it is a good idea to have a cell that does the inverse of the conversion you are specifying, just to check you have done it right. For example, if you do a SimpleToDFX, then do a DFToSimpleX just to make sure that you get back to where you started. That way you at least know that your calculation is internally consistent and you are probably (probably, only you can really tell) selecting the correct inputs. | ||||||||
Example: .001 |