Description Computes the nominal annual interest rate, given the effective interest rate. This will remove the effect of yearly compounding on the specified interest rate.
Syntax NOMINAL ( effective_rate, periods)
| Argument | Description |
|---|---|
| effective_rate | The interest rate that reflects the effect of compounding. |
| periods | The number of compounding periods per year. Decimal values are truncated to integers. |
Examples This function returns 0.0675:
NOMINAL(0.0696,12)
This function returns 0.0684:
NOMINAL(0.0696,2)
See Also EFFECT
