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:
NOMINAL(0.053543,4) results in 5.2500%
end example]