Nominal

Syntax

Nominal(EffectRate, PeriodCount)

EffectRate. The effective interest rate. Parameter value must be greater than zero.

PeriodCount. Number of compounding periods per year. Parameter value must be greater or equal to zero.

NOTE. To determine the parameter, specify either the parameter value or the cell address where it is located.

It returns the annual nominal interest rate if effective (actual) interest rate and the number of compounding periods per year are set.

Formula	Result	Description
=Nominal(0.25, 4)	0,23	The nominal annual interest rate based on the annual rate of 0.25 and four periods per year, over which compound interest is accrued.
=Nominal(B6, 12)	0,14	The nominal annual interest rate based on the annual rate, specified in the B6 cell and twelve periods per year, over which compound interest is accrued. The B6 cell contains the 0.15 value.