Difference between revisions of "Manuals/calci/NOMINAL"
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*The relationship between Effective Interest Rate and Nominal Interest Rate is as follows - | *The relationship between Effective Interest Rate and Nominal Interest Rate is as follows - | ||
− | + | <math> ER = (1 + \frac{NominalRate}{nperyear})^{nperyear} - 1 </math> | |
− | where ER - Effective Interest Rate | + | where |
+ | |||
+ | *<math>ER</math> - Effective Interest Rate | ||
− | + | <math>NominalRate</math> - Nominal Interest Rate | |
− | + | <math>nperyear</math> - number of compounding periods per year | |
*Arguments <math>ER</math> and <math>nperyear</math> should be numeric, else Calci returns #N/A error message. | *Arguments <math>ER</math> and <math>nperyear</math> should be numeric, else Calci returns #N/A error message. | ||
*If <math>ER</math> < 0 or if <math>nperyear</math> < 1, Calci returns #N/A error message. | *If <math>ER</math> < 0 or if <math>nperyear</math> < 1, Calci returns #N/A error message. |
Revision as of 08:59, 18 February 2014
NOMINAL(ER, nperyear)
Where
- is the effective interest rate, and
- is the number of compounding periods per year.
NOMINAL() calculates the nominal annual interest rate.
Description
NOMINAL(ER, nperyear)
- 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.