## Category:

Financial Analysis

## Summary:

Calculates the yearly nominal interest rate, given the effective rate and the number of compounding periods per year.

## Returns:

Returns a non-negative real number (expressed as a percentage or fraction) which is the annual nominal interest rate for the given arguments.

## Arguments:

Effective Rate is a positive real number (expressed as a percentage or fraction) or a reference to the cell containing that number which is the effective interest rate.

NPerY is a positive whole number or a reference to the cell containing that number which is the number of periodic interest payments per year.

• If Effective Rate is less than or equal to 0 then the function returns an error value.
• If NPerY is not an integer then it is truncated to an integer.
• If after truncation NPerY is less than 1 then the function returns an error value.

• Suppose that P is the present value, NPerY is the compounding periods per year, the future value after one year is

The mapping between the nominal rate and the effective rate is The functions whose names end with _ADD or _EXCEL2003 return the same results as the corresponding Microsoft Excel 2003 functions without the suffix. Use the functions without suffix to get results based on international standards.

## Examples:

Formula Description Returns
=NOMINAL_ADD(13.5%;12) The function calculates the nominal interest per year for an effective interest rate of 13.5% if twelve payments are made per year. 12.73%.
=NOMINAL_ADD(0.135;12) The function calculates the nominal interest per year for an effective interest rate of 13.5% if twelve payments are made per year. 12.73%.
=NOMINAL_ADD(0;12) The function returns an error value since Efective Rate is 0. Err:502

EFFECT

NOMINAL

None

None