The problem occurs due to the formatting of the cell containing the NOMINAL function. The result is displayed as a decimal as seen above or it shows 0%. The formula to be used would be =NOMINAL(effect_rate,npery). Let’s assume we need to choose from three loans to calculate the nominal interest rate with different terms.

To understand the uses of the NOMINAL function, let’s consider an example: Example 1 How to use the NOMINAL Function in Excel? Npery (required argument) – This is the number of compounding periods.Effect_rate (required argument) – This is the effective interest rate.The NOMINAL function uses the following arguments: If two bonds are to be compared, one advertising a real interest rate while the other a nominal rate, the NOMINAL function can be helpful. In financial analysis, we often evaluate more than one bond and hence are interested in knowing the net return offered by each. The function will return the nominal annual interest rate when the effective rate and number of compounding years are given. The NOMINAL Function is categorized under Excel Financial functions. Updated JanuWhat is the NOMINAL Function?

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