Calculates the effective interest rate for a nominal rate and number of periods.
Use this formula calculator for interest rate conversions between nominal and effective.
Formula: effective(Nom/100, Per) * 100
Nom: The nominal interest rate.
n: The number of compounding periods.
effective(): The function.
Calculate the effective interest rate for a nominal rate of 5% and 12 compounding periods?
|5||Nom||5.0000||Stores the value.|
|12||Per||12.0000||Stores the value.|
|Eff||5.1162||Calculates the effective rate.|
Calculate the nominal rate for an effective rate of 5.2% and 12 compounding periods?
These keystrokes assume the values from example 1.
|5.2||Eff||5.2000||Stores the value.|
|Nom||5.0800||Calculates the nominal rate.|