What Is Nominal Interest Rate?
Nominal Interest Rate is the percentage increase in money you pay the lender for the use of the money you borrowed .using the Nominal Interest Rate Calculator we can calculate Nominal Interest Rate per Period if Effective Rate , Compounding frequency and Number of Periods is known also we can find Effective Interest Rate for t Periods and Rate per Compounding Period . By using following formula -:
Nominal Interest Rate per Period:
r = m * [(1 + i)1/m - 1]
where
r = Nominal Interest Rate in decimal form
m = Compounding Periods
i = Effective Interest Rate in decimal form
Effective Interest Rate for t Periods:
it = (1 + i)t - 1
Where
i = Effective Interest Rate in decimal form
t = Time Periods
Rate per Compounding Period:
P = R / m
Where
m = Compounding Periods
R = Rate of Interest per Period in Percent
How to use Nominal Interest Rate Calculator?
Step by step procedure for Nominal Interest Rate Calculator is as follows.
Step 1: Input appropriate value.
Step 2: Now click on "Calculate" button to get result.
You will get Nominal Interest Rate , Effective Interest Rate for t periods , Rate per Compounding periods as per your value input.