Formulas and Functions

Examples
=NOMINAL(0.0513, 365) returns approximately 5.00%, the nominal annual interest rate if the eective
rate of 5.13% was based on daily compounding.
=NOMINAL(0.0512, 12) returns approximately 5.00%, the nominal annual interest rate if the eective
rate of 5.12% was based on monthly compounding.
=NOMINAL(0.0509, 4) returns approximately 5.00%, the nominal annual interest rate if the eective
rate of 5.09% was based on quarterly compounding.
=NOMINAL(0.0506, 2) returns approximately 5.00%, the nominal annual interest rate if the eective
rate of 5.06% was based on semiannual compounding.
=NOMINAL(0.0500, 1) returns approximately 5.00%, the nominal annual interest rate if the eective
rate of 5.00% was based on annual compounding.
Related Topics
For related functions and additional information, see:
“EFFECT” on page 119
“Common Arguments Used in Financial Functions” on page 341
“Listing of Financial Functions” on page 96
“Value Types” on page 36
“The Elements of Formulas” on page 15
“Using the Keyboard and Mouse to Create and Edit Formulas” on page 26
“Pasting from Examples in Help” on page 41
NPER
The NPER function returns the number of payment periods for a loan or annuity based
on a series of regular periodic cash ows (payments of a constant amount and all cash
ows at constant intervals) and a xed interest rate.
NPER(periodic-rate, payment, present-value, future-value, when-due)
 periodic-rate: The interest rate per period. periodic-rate is a number value and is
either entered as a decimal (for example, 0.08) or with a percent sign (for example, 8%).
 payment: The payment made or amount received each period. payment is a
number value. At each period, an amount received is a positive amount and an
amount invested is a negative amount. For example, it could be a monthly loan
payment (negative) or the periodic payment received on an annuity (positive).
13 0 Chapter 6 Financial Functions