# Manuals/calci/NOMINAL

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**NOMINAL (EffectiveInterestRate,NoOfCompoundingPeriods)**

Where

- is the effective interest rate, and
- is the number of compounding periods per year.
- NOMINAL() returns the annual nominal interest rate.

## Description

NOMINAL (EffectiveInterestRate,NoOfCompoundingPeriods)

- Nominal Interest Rate is calculated depending on the effective interest rate and the number of compounding periods per year.
- The relationship between Effective Interest Rate and Nominal Interest Rate is as follows -

where

- Effective Interest Rate

- Nominal Interest Rate

- number of compounding periods per year

- Arguments and should be numeric, else Calci returns #N/A error message.
- If < 0 or if < 1, Calci returns #N/A error message.
- If is not an integer, it is truncated.

## Examples

Consider the following example that shows the use of NOMINAL function:

5.75% | ||

5 | ||

=NOMINAL(A1,A2)displays 0.05622136652263632as a result. =NOMINAL("6.10%",6)displays 0.05950499347618399as a result.

## Related Videos

## See Also

## References