Microsoft Office Tutorials and References
In Depth Information
Figure 6.23
Use MIRR to determine
the modified internal
rate of return for several
periodic cash flows.
The function
built with cell
NOMINAL returns the nominal annual interest rate given an effective rate and the total number
of compounding periods for the year.
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.
The number of coumpounding periods over the year.
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.
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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