3.5.7.2 Nominal

Description

Minimum Origin Version Required: 2019 SR0

This function is used to calculate the nominal annual interest rate, given the effective rate erate and the number of compounding periods per year npery.

Nominal function is related to Effect function, their relationship is shown in the following equation:


Effect = {\left( {1 + \frac{{nrate}}{{nprey}}} \right)^{nprey}} - 1\


Syntax

double Nominal( double erate, int npery)

Parameters

erate

The effective interest rate. erate > 0

nprey

The number of compounding periods per year. npery >= 1

Example

aa=0.05;
bb=4;
Nominal(aa, bb) = ;  // returns 0.0490889

See Also

Nominal, RRI,