Difference between revisions of "Manuals/calci/NOMINAL"

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(Created page with "<div id="6SpaceContent" class="zcontent" align="left"><font face="Arial, sans-serif"><font size="2"><font color="#484848">'''NOMINAL'''</font><font color="#484848">(</font><fo...")
 
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<div id="6SpaceContent" class="zcontent" align="left"><font face="Arial, sans-serif"><font size="2"><font color="#484848">'''NOMINAL'''</font><font color="#484848">(</font><font color="#484848">'''ER'''</font><font color="#484848">, </font><font color="#484848">'''nper'''</font><font color="#484848">)</font></font></font>
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=NOMINAL(ER, nperyear)=
  
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<font color="#484848"><font face="Arial, sans-serif"><font size="2">Where 'ER'is the effective interest rate and 'nper' is the number of compounding periods per year.</font></font></font>
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Where
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*<math>ER</math> is the effective interest rate, and
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*<math>nperyear</math> is the number of compounding periods per year.
  
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</div>
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NOMINAL() calculates the nominal annual interest rate.
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----
 
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<div id="1SpaceContent" class="zcontent" align="left"> <font color="#484848"><font face="Arial, sans-serif"><font size="2">This function calculates the nominal annual interest rate, given the effective rate and the number of compounding periods per year.</font></font></font></div>
 
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----
 
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<div id="7SpaceContent" class="zcontent" align="left"> 
 
  
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* <font color="#484848"><font face="Arial, sans-serif"><font size="2">NOMINAL shows the error value. When either argument is nonnumeric or ER ≤ 0 or nper &lt;1</font></font></font>
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== Description ==
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* <font color="#484848"><font face="Arial, sans-serif"><font size="2">NOMINAL is shown in the following equation: </font></font></font>
 
  
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<font color="#484848"></font>
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NOMINAL(ER, nperyear)
  
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</div>
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*Nominal Interest Rate is calculated depending on the effective interest rate and the number of compounding periods per year.
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----
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*The relationship between Effective Interest Rate and Nominal Interest Rate is as follows -
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<div id="12SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="left">
 
  
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NOMINAL
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<math>ER = \frac{1 + \frac{Nominal_Rate}{nperyear}}^(nperyear) - 1</math>
  
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</div></div>
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where ER - Effective Interest Rate
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----
 
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<div id="8SpaceContent" class="zcontent" align="left"> 
 
  
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<font color="#000000"><font face="Arial, sans-serif"><font size="2">Lets see an example,</font></font></font>
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      Nominal_Rate - Nominal Interest Rate
  
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<font color="#000000"><font face="Arial, sans-serif"><font size="2">NOMINAL(ER, nper)</font></font></font>
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      nperyear - number of compounding periods per year
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*Arguments <math>ER</math> and <math>nperyear</math> should be numeric, else Calci returns #N/A error message.
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*If <math>ER</math> &lt; 0 or if <math>nperyear</math> &lt; 1, Calci returns #N/A error message.
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*If <math>nperyear</math> is not an integer, it is truncated.
  
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<font color="#000000"><font face="Arial, sans-serif"><font size="2">B</font></font></font>
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== Examples ==
  
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<font color="#000000"><font face="Arial, sans-serif"><font size="2">6.234%</font></font></font>
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Consider the following example that shows the use of NOMINAL function:
  
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<font color="#000000"><font face="Arial, sans-serif"><font size="2">5</font></font></font>
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<div id="2SpaceContent" class="zcontent" align="left">
  
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<font color="#000000"><font face="Arial, sans-serif"><font size="2"><nowiki>=NOMINAL(B2,B3) is 0.0608</nowiki></font></font></font>
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{| id="TABLE3" class="SpreadSheet blue"
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</div>
 
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----
 
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<div id="10SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Syntax </div><div class="ZEditBox"><center></center></div></div>
 
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----
 
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<div id="4SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Remarks </div></div>
 
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----
 
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<div id="3SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Examples </div></div>
 
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----
 
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<div id="11SpaceContent" class="zcontent" align="left"><div class="ZEditBox" align="justify">Description </div></div>
 
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----
 
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<div id="5SpaceContent" class="zcontent" align="left">
 
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{| id="TABLE1" class="SpreadSheet blue"
 
 
|- class="even"
 
|- class="even"
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| class=" " | 5.75%
 
| class=" " |
 
| class=" " |
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| Column1
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| class=" " |
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| Column2
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| Column3
 
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| Column4
 
 
|- class="odd"
 
|- class="odd"
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| class=" " | Row1
 
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| class="sshl_f" | 6.234%
 
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| class="                                                                                                                            " |
 
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|- class="even"
 
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| class="  " | Row2
 
 
| class="sshl_f" | 5
 
| class="sshl_f" | 5
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| class=" " |
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|
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| class=" " |
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|- class="odd"
 
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| Row3
 
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| class="sshl_f" | 0.060841
 
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|- class="even"
 
|- class="even"
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| Row4
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| class=" " |  
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| class="SelectTd                                                                                                          SelectTD  SelectTD" |
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| class=" " |
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<div id="5Space_Handle" title="Click and Drag to resize CALCI Column/Row/Cell. It is EZ!"></div><div id="5Space_Copy" title="Click and Drag over to AutoFill other cells."></div>
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| class=" " |
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|- class="odd"
 
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| class=" " | Row5
 
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|- class="even"
 
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| Row6
 
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|}
 
|}
  
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<div align="left">[[Image:calci1.gif]]</div></div>
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=NOMINAL(A1,A2) ''displays 0.05622136652263632'' as a result.
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----
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=NOMINAL("6.10%",6) ''displays 0.05950499347618399'' as a result.
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<div id="9SpaceContent" class="zcontent" align="left"><div>[[Image:14.JPG|100%px|http://store.zcubes.com/33975CA25A304262905E768B19753F5D/Uploaded/14.JPG]]</div></div>
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----
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== See Also ==
 +
 
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*[[Manuals/calci/INTRATE | INTRATE]]
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== References ==
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*[http://en.wikipedia.org/wiki/Nominal_interest_rate Nominal Interest Rate]
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*[http://en.wikipedia.org/wiki/Effective_interest_rate Effective Interest Rate]

Revision as of 08:47, 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 -
Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://wikimedia.org/api/rest_v1/":): {\displaystyle ER = \frac{1 + \frac{Nominal_Rate}{nperyear}}^(nperyear) - 1}

where ER - Effective Interest Rate 

     Nominal_Rate - Nominal Interest Rate

     nperyear - 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.

See Also

References

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