Function RateNominal(EffectiveRate, NumberPeriods)

RateNominal

The function RateNominal returns the nominal annual interest rate, expressed as a fraction, on the basis of an effective annual interest rate plus the number of compounding periods per year.

RateNominal(
    EffectiveRate,             ! (input) numerical expression
    NumberPeriods              ! (input) numerical expression
    )

Arguments

EffectiveRate

The effective annual interest rate expressed as a fraction. EffectiveRate must be a nonnegative decimal number.

NumberPeriods

The number of compounding periods per year. NumberPeriods must be a positive integer.

Return Value

The function RateNominal returns the nominal annual interest rate expressed as a fraction.

Note

  • The equation on which the conversion between nominal and effective rates is based, is explained for the function RateEffective (the inverse of RateNominal).

  • This function can be used in an objective function or constraint, and the input parameter EffectiveRate can be used as a variable.

  • The function RateNominal is similar to the Excel function NOMINAL.

Example

_p_r1 := RateNominal( 2, 12 );
_p_r2 := RateNominal( 5, 12 );

block where listing_number_precision := 6 ;
        display _p_r1, _p_r2 ;
endblock ;

results in:

_p_r1 := 1.150472 ;
_p_r2 := 1.932440 ;

See also