How to use the NOMINAL function
Author: Oscar Cronquist Article last updated on May 11, 2022
The NOMINAL function calculates the nominal annual interest rate based on the effective rate and the number of compounding periods per year.
Formula in cell B7:
=NORMINAL(B3,B5)
Excel Function Syntax
NOMINAL(effect_rate, npery)
Arguments
| effect_rate | Required. The effective interest rate. |
| npery | Required. The number of compounding periods per year. |
Comments
The NOMINAL function returns:
- #VALUE! if an argument is not a numerical value.
- #NUM! if effect_rate is smaller than 0 (zero) or if npery is smaller than 1.
The npery argument is automatically converted to a whole number by removing the decimals.
The NOMINAL function is related to the EFFECT function.
Functions in 'Financial' category
The NOMINAL function function is one of many functions in the 'Financial' category.
Calculates the accrued interest for a security that pays periodic interest.
Calculates the accrued interest for a security that pays interest at maturity.
Calculates the depreciation for each accounting period. This function is designed for the French accounting system.
Calculates the depreciation for each accounting period.
Calculates the accumulated interest based on a start and end period on a loan.
Calculates the accumulated principal based on a start and end period on a loan.
Calculates the depreciation of an asset for a given period using the fixed-declining balance method.
Calculates the depreciation of an asset for a given period using the double-declining balance method or based on user input.
Converts a decimal number to its equivalent in fractional numbers, used in securities denominated in dollars.
Calculates the effective annual interest rate, given the nominal annual interest rate and the number of compounding periods per year.
Returns the future value of an investment based on a constant interest rate.
Calculates the interest payment for a specific period for an investment based on repeated constant payments and a constant interest rate.
Calculates the interest paid during a specific period of an investment.
Calculates the nominal annual interest rate based on the effective rate and the number of compounding periods per year.
Calculates how many periods required by an investment to reach a given amount based on a rate in percentage.
Returns the payment needed for borrowing a fixed sum of money based on constant payments and interest rate.
Calculates the principal payment for a specific period for an investment based on repeated constant payments and a constant interest rate.
Calculates the price per $100 nominal value of a bond that pays interest at maturity.
Calculates the net present value for an investment or loan.
Returns the interest rate per period of an annuity.
Calculates the growth of an investment in percent per period.
Calculates the yearly asset depreciation of a given year.
Calculates the par amount (face value) for a Treasury bill.
Calculates the yield for a Treasury bill.
Calculates the depreciation of an asset for a given period using the double-declining balance method or based on user input, you may use partial periods in this function.
Calculates net present value for cash flows that may or may not be periodic
Calculates the yield for a security that pays interest. The YIELD function is designed to calculate the bond yield.
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