Difference between revisions of "Manuals/calci/NOMINAL"

Revision as of 17:16, 27 July 2018

NOMINAL (EffectiveInterestRate,NoOfCompoundingPeriods)

Where

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() calculates the nominal annual interest rate.
+NOMINAL() returns the annual nominal 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.