Microsoft Office Tutorials and References
In Depth Information
NOMINAL
Figure 6.23
Use MIRR to determine
the modified internal
rate of return for several
periodic cash flows.
A
The function
built with cell
referencing
NOMINAL
NOMINAL returns the nominal annual interest rate given an effective rate and the total number
of compounding periods for the year.
=NOMINAL(effective_rate,npery)
The NOMINAL function is found only if the Analysis Toolpak is installed. It must be turned on
using the Add-Ins command from the Tools menu.
The effective interest rate.
EFFECT_RATE
The number of coumpounding periods over the year.
NPERY
NOMINAL is calculated as follows:
Note the following example:
For example: =NOMINAL(6.2%,4) would return the result of .060%.
NPE NPER returns the total number of periods for an investment. This is based on a periodic
constant payment and a constant interest rate.
=NPER(rate,pmt,pv,fv,type)
Notice the example in Figure 6.24. The interest rate is 3%, the payment per period is $350.
The current present value is $11,500. The future value of the loan, or the amount you want to
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