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?
Value | Keystrokes | Display | Description |
---|---|---|---|
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.
Value | Keystrokes | Display | Description |
---|---|---|---|
5.2 | Eff | 5.2000 | Stores the value. |
Nom | 5.0800 | Calculates the nominal rate. |
Reference:
Effective interest rate - Wikipedia