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Return the nominal annual interest rate. <span align="right" style="background-color:99FF99"><strong>Excel: NOMINAL</strong></span>

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Interface

#include <codecogs/finance/banking/interestnominal.h>

using namespace Finance::Banking;

double interestNominal(double effRate, int nper)

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

The function is based on the following equation:

$\left[ (1+effRate)^{1 /nper} - 1 \right ]*nper$

(1)

Example 1

#include <iostream>

#include <codecogs/finance/banking/interestnominal.h>

int main(int argc, char *argv[])
{
  double rate;
  
  printf("Effective rate\tPeriods\tNominal rate\n");
  for (double a=0.0025; a<0.1; a+=0.005) 
	{
    rate=Finance::Banking::interestNominal(a, 4);
    printf("%f\t%i\t%f\n", a, 4, rate);
  }  
  return 1;
}

Output:

Effective rate  Periods Nominal rate
0.002500        4       0.002498
0.007500        4       0.007479
0.012500        4       0.012442
0.017500        4       0.017386
0.022500        4       0.022313
0.027500        4       0.027221
0.032500        4       0.032111
0.037500        4       0.036984
0.042500        4       0.041839
0.047500        4       0.046677
0.052500        4       0.051497
0.057500        4       0.056300
0.062500        4       0.061086
0.067500        4       0.065856
0.072500        4       0.070608
0.077500        4       0.075344
0.082500        4       0.080064
0.087500        4       0.084767
0.092500        4       0.089454
0.097500        4       0.094125

Parameters

effRate

The effective interest rate.

nper

The number of compounding periods per year.

Returns

The nominal annual interest rate.

Interactive Calculator

effRate

nper

Result –