NOMINAL

NOMINAL ( effect-rate , npery )

Description: Computes the nominal annual interest rate, given the effective rate and the number of compounding periods per year.

Mathematical Formula:

NOMINAL is related to EFFECT:

Arguments:

Name

Type

Description

effect-rate

number

The effective interest rate.

npery

number

The number of compounding periods per year, truncated to integer.

Return Type and Value: number – The nominal annual interest rate.

However, if

  • effect-rate ≤ 0, #NUM! is returned.

  • npery < 1, #NUM! is returned.

example: