Manuals/calci/NOMINAL

NOMINAL (EffectiveInterestRate,NoOfCompoundingPeriods)

Where

• is the effective interest rate, and
• is the number of compounding periods per year.
• NOMINAL() returns the annual nominal interest rate.

Description

NOMINAL (EffectiveInterestRate,NoOfCompoundingPeriods)

• Nominal Interest Rate is calculated depending on the effective interest rate and the number of compounding periods per year.
• The relationship between Effective Interest Rate and Nominal Interest Rate is as follows - where - Effective Interest Rate - Nominal Interest Rate - number of compounding periods per year

• Arguments and should be numeric, else Calci returns #N/A error message.
• If < 0 or if < 1, Calci returns #N/A error message.
• If is not an integer, it is truncated.

Examples

Consider the following example that shows the use of NOMINAL function:

 5.75% 5
=NOMINAL(A1,A2) displays 0.05622136652263632 as a result.
=NOMINAL("6.10%",6) displays 0.05950499347618399 as a result.

NOMINAL Function