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The Excel NOMINAL perform calculates the nominal rate of interest when given an efficient annual rate of interest and the variety of compounding durations per 12 months. Nominal rate of interest is usually the acknowledged rate on a monetary product. Efficient annual rate of interest is the rate of interest really earned resulting from compounding. For instance, with an efficient rate of 6.14% and curiosity compounded quarterly, NOMINAL returns 6.00%:
Within the instance proven, the formulation in D6, copied down, is:
Format the consequence as a share to show with % image.
- Npery ought to be an integer (Excel will truncate if not).
- The effect_rate ought to be a quantity between 0 and 1.