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NOMINAL
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Returns the nominal annual interest rate, given the effective rate and the number of compounding periods per year.
If this function is not available, and returns the #NAME? error, install and load the Analysis ToolPak add-in.
How?
- On the Tools menu, click Add-Ins.
- In the Add-Ins available list, select the Analysis ToolPak box, and then click OK.
- If necessary, follow the instructions in the setup program.
Syntax
NOMINAL(effect_rate,npery)
Effect_rate is the effective interest rate.
Npery is the number of compounding periods per year.
Remarks
- Npery is truncated to an integer.
- If either argument is nonnumeric, NOMINAL returns the #VALUE! error value.
- If effect_rate ≤ 0 or if npery < 1, NOMINAL returns the #NUM! error value.
- NOMINAL is related to EFFECT as shown in the following equation:
Example
The example may be easier to understand if you copy it to a blank worksheet.
How?
- Create a blank workbook or worksheet.
- Select the example in the Help topic. Do not select the row or column headers.
Selecting an example from Help
- Press CTRL+C.
- In the worksheet, select cell A1, and press CTRL+V.
- To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Tools menu, point to Formula Auditing, and then click Formula Auditing Mode.
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|
| A |
B |
| Data |
Description |
5.3543% |
Effective interest rate |
| 4 |
Number of compounding periods per year |
| Formula |
Description (Result) |
| =NOMINAL(A2,A3) |
Nominal interest rate with the terms above (0.0525 or 5.25 percent) |
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