NOMINAL

Definition

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

Sample Usage

Syntax

NOMINAL(effective_rate, periods_per_year)

• effective_rate - The effective interest rate per year.

• periods_per_year - The number of compounding periods per year.

See Also

INTRATE: Calculates the effective interest rate generated when an investment is purchased at one price and sold at another with no interest or dividends generated by the investment itself.

EFFECT: Calculates the annual effective interest rate given the nominal rate and number of compounding periods per year.

In order to use the NOMINAL formula, start with your edited Excellentable: