Financial - NOMINAL Function

Description

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

Syntax

NOMINAL (effect_rate, npery)

Arguments

Argument Description Required/ Optional
Effect_rate The effective interest rate. Required
Npery The number of compounding periods per year. Required

Notes

  • Npery is truncated to an integer.

  • If either of the arguments is nonnumeric, NOMINAL returns the #VALUE! error value.

  • If effect_rate ≤ 0 or if npery < 1, NOMINAL returns the #NUM! error value.

  • NOMINAL (effect_rate,npery) is related to EFFECT(nominal_rate,npery) through

    effective_rate=(1+(nominal_rate/npery))*npery -1

  • The relationship between NOMINAL and EFFECT is shown in the following equation −

    $$EFFECT = \left ( 1+\frac{Nominal\_rate}{Npery} \right )^{Npery}-1$$

Applicability

Excel 2007, Excel 2010, Excel 2013, Excel 2016

Example

NOMINAL Function
advanced_excel_financial_functions.htm
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