Returns the annual nominal interest rate for a given effective interest rate and number of compounding periods per year.
Składnia
NOMINAL(effect_rate, npery)Argumenty
effect_ratewymagane
The effective annual interest rate.
nperywymagane
The number of compounding periods per year.
The NOMINAL function calculates the nominal rate based on the effective annual rate. It is the inverse of the EFFECT function, allowing you to determine the base rate before compounding effects are applied.
=NOMINAL(0.0535, 4)→0.05245Calculates the nominal rate for an effective rate of 5.35% compounded quarterly.
Select a cell
Click on the cell where you want to display the nominal interest rate.
Enter the formula
Type =NOMINAL( and provide the effective rate and the number of periods, then press Enter.
The nominal rate is the stated interest rate without compounding, while the effective rate accounts for the impact of compounding within the year.