Difference between revisions of "Manuals/calci/NOMINAL"
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| − | =NOMINAL( | + | <div style="font-size:30px">'''NOMINAL (EffectiveInterestRate,NoOfCompoundingPeriods)'''</div><br/> |
Where | Where | ||
| − | *<math> | + | *<math>EffectiveInterestRate</math> is the effective interest rate, and |
| − | *<math> | + | *<math>NoOfCompoundingPeriods</math> is the number of compounding periods per year. |
| − | + | **NOMINAL() returns the annual nominal interest rate. | |
| − | NOMINAL() | ||
== Description == | == Description == | ||
| − | NOMINAL( | + | NOMINAL (EffectiveInterestRate,NoOfCompoundingPeriods) |
*Nominal Interest Rate is calculated depending on the effective interest rate and the number of compounding periods per year. | *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 - | *The relationship between Effective Interest Rate and Nominal Interest Rate is as follows - | ||
| − | + | <math> ER = (1 + \frac{NominalRate}{nperyear})^{nperyear} - 1 </math> | |
| − | where | + | 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. | ||
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=NOMINAL(A1,A2) ''displays 0.05622136652263632'' as a result. | =NOMINAL(A1,A2) ''displays 0.05622136652263632'' as a result. | ||
=NOMINAL("6.10%",6) ''displays 0.05950499347618399'' as a result. | =NOMINAL("6.10%",6) ''displays 0.05950499347618399'' as a result. | ||
| + | |||
| + | ==Related Videos== | ||
| + | |||
| + | {{#ev:youtube|-3VDp4mmr2s|280|center|NOMINAL Function}} | ||
== See Also == | == See Also == | ||
| Line 60: | Line 66: | ||
*[http://en.wikipedia.org/wiki/Nominal_interest_rate Nominal Interest Rate] | *[http://en.wikipedia.org/wiki/Nominal_interest_rate Nominal Interest Rate] | ||
*[http://en.wikipedia.org/wiki/Effective_interest_rate Effective Interest Rate] | *[http://en.wikipedia.org/wiki/Effective_interest_rate Effective Interest Rate] | ||
| + | |||
| + | |||
| + | |||
| + | *[[Z_API_Functions | List of Main Z Functions]] | ||
| + | |||
| + | *[[ Z3 | Z3 home ]] | ||
Latest revision as of 16:27, 22 August 2018
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.
is the effective interest rate, and
is the number of compounding periods per year.
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
- Effective Interest Rate
- Nominal Interest Rate
- Nominal Interest Rate
- number of compounding periods per year
- 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.
Related Videos
See Also
References