Difference between revisions of "Manuals/calci/NOMINAL"

Latest revision as of 17:27, 22 August 2018

NOMINAL (EffectiveInterestRate,NoOfCompoundingPeriods)

Where

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

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 -

$ER=(1+{\frac {NominalRate}{nperyear}})^{nperyear}-1$

where

$ER$ - Effective Interest Rate

$NominalRate$ - Nominal Interest Rate

$nperyear$ - number of compounding periods per year

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

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

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

@@ Line 1: / Line 1: @@
-=NOMINAL(ER, nperyear)=
+<div style="font-size:30px">'''NOMINAL (EffectiveInterestRate,NoOfCompoundingPeriods)'''</div><br/>
 Where
-*<math>ER</math> is the effective interest rate, and
+*<math>EffectiveInterestRate</math> is the effective interest rate, and
-*<math>nperyear</math> is the number of compounding periods per year.
+*<math>NoOfCompoundingPeriods</math> is the number of compounding periods per year.
+**NOMINAL() returns the annual nominal interest rate.
-NOMINAL() calculates the nominal annual interest rate.
 == Description ==
-NOMINAL(ER, nperyear)
+NOMINAL (EffectiveInterestRate,NoOfCompoundingPeriods)
 *Nominal Interest Rate is calculated depending on the effective interest rate and the number of compounding periods per year.