# NOMINAL function

Returns the nominal annual interest rate, given the effective rate and the number of compounding periods per year.

Syntax

NOMINAL(effect_rate,npery)

Effect_rate     is the effective interest rate.

Npery     is the number of compounding periods per year.

Remarks

• Npery is truncated to an integer.
• If either argument is nonnumeric, NOMINAL returns the #VALUE! error value.
• If effect_rate ≤ 0 or if npery < 1, NOMINAL returns the #NUM! error value.
• NOMINAL is related to EFFECT as shown in the following equation:

Example

The example may be easier to understand if you copy it to a blank worksheet.

• Create a blank workbook or worksheet.
• Select the example in the Help topic.

Note   Do not select the row or column headers.

Selecting an example from Help
• Press CTRL+C.
• In the worksheet, select cell A1, and press CTRL+V.
• To switch between viewing the results and viewing the formulas that return the results, press CTRL+` (grave accent), or on the Formulas tab, in the Formula Auditing group, click the Show Formulas button.
A B
Data Description
5.`3543`% Effective interest rate
4 Number of compounding periods per year
Formula Description (Result)
=NOMINAL(A2,A3) Nominal interest rate with the terms above (0.0525 or 5.25 percent)

Applies to:
Excel 2007