NOMINAL

Nominal interest rate

Description

Calculates the annual nominal interest using the number of compounding periods per year and the effective rate.

Function signature

NOMINAL(effectiverate: Number, periodsperyear: Number) => Number

Parameter

Description

Effective rate

The effective interest rate per year.

Periods per year

The number of compounding periods per year.

Examples

Formula

Return value

NOMINAL(0.1, 5)

0.09622438246

NOMINAL(0.5, 5)

0.422358856

NOMINAL(1, 5)

0.743491775

NOMINAL(1, 6)

0.7347722899