Manuals/calci/NOMINAL

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.

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

  - 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.

Related Videos

NOMINAL Function

See Also

References