Related Function:

The 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)

#### Arguments

Argument | Description |
---|---|

effect_rate | The effective interest rate |

npery | The number of compounding periods per year |

#### Examples

A | B | C | D | |
---|---|---|---|---|

1 | Data | |||

2 | 5.3543% | Effective interest rate | ||

3 | 4 | Number of compounding periods per year | ||

4 | ||||

5 | Formula | Result | Notes | |

6 | =NOMINAL(A2,A3) | 5.25% | Nominal interest rate with the terms above |

#### Common Function Error(s)

Problem | What went wrong |
---|---|

#VALUE! | Occurs if either of the supplied arguments cannot be recognized as a number |

#NUM! | Occurs if the supplied effect_rate argument is ≤ 0 or the supplied npery argument is < 1 |

#NAME? | Occurs when Analysis ToolPak add-in is not enabled |

Result is presented as a decimal or 0% | Likely to be due to the formatting of the cell containing the function and can be fixed by formatting the cell as a percentage, with decimal places |