FormulaDen.com

Physics Chemistry Math Chemical Engineering Civil Electrical Electronics Electronics and Instrumentation Materials Science Mechanical Production Engineering Financial Health

Nominal Interest Rate Formula

Fx Copy

LaTeX Copy

Nominal Interest Rate or Stated Rate refers to the interest rate before taking inflation into account. Check FAQs

i = n \cdot ({(1 + EAR)}^{\frac{1}{n}} - 1)

i - Nominal Interest Rate or Stated Rate?n - Compounding Periods?EAR - Effective Interest Rate?

Nominal Interest Rate Example

With values

With units

Only example

Here is how the Nominal Interest Rate equation looks like with Values.

Here is how the Nominal Interest Rate equation looks like with Units.

Here is how the Nominal Interest Rate equation looks like.

2.1481 = 10 \cdot ({(1 + 6)}^{\frac{1}{10}} - 1)

2.1481 = 10 \cdot ({(1 + 6)}^{\frac{1}{10}} - 1)

2.1481 = 10 \cdot ({(1 + 6)}^{\frac{1}{10}} - 1)

Tip: Use pencil ( Pencil

) icon above to edit Input Values and Units.

Calculate

Recalculate

Solution

Copy

Reset

You are here -

Home » Category

Financial » Category

Investment » Category

Interest Rate » fx Nominal Interest Rate

Nominal Interest Rate Solution

Follow our step by step solution on how to calculate Nominal Interest Rate?

FIRST Step Consider the formula

i = n \cdot ({(1 + EAR)}^{\frac{1}{n}} - 1)

Next Step Substitute values of Variables

∴

i = 10 \cdot ({(1 + 6)}^{\frac{1}{10}} - 1)

Next Step Prepare to Evaluate

∴

i = 10 \cdot ({(1 + 6)}^{\frac{1}{10}} - 1)

Next Step Evaluate

∴

i = 2.14814044039067

LAST Step Rounding Answer

∴

i = 2.1481

Nominal Interest Rate Formula Elements

Variables

Nominal Interest Rate or Stated Rate

Nominal Interest Rate or Stated Rate refers to the interest rate before taking inflation into account.

Symbol: i

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Nominal Interest Rate or Stated Rate

Compounding Periods

Compounding Periods is the number of times compounding will occur during a period.

Symbol: n

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Compounding Periods

Effective Interest Rate

The Effective Interest rate is the true rate of interest earned.

Symbol: EAR

Measurement: NAUnit: Unitless

Note: Value should be greater than 0.

Formulas to find Effective Interest Rate

Other formulas in Interest Rate category

Go Annual Percentage Rate

APR = MPR \cdot 12

How to Evaluate Nominal Interest Rate?

Nominal Interest Rate evaluator uses Nominal Interest Rate or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1) to evaluate the Nominal Interest Rate or Stated Rate, The Nominal Interest Rate refers to the interest rate before taking inflation into account. Nominal Interest Rate or Stated Rate is denoted by i symbol.

How to evaluate Nominal Interest Rate using this online evaluator? To use this online evaluator for Nominal Interest Rate, enter Compounding Periods (n) & Effective Interest Rate (EAR) and hit the calculate button.

FAQs on Nominal Interest Rate

What is the formula to find Nominal Interest Rate?

The formula of Nominal Interest Rate is expressed as Nominal Interest Rate or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1). Here is an example- 2.14814 = 10*((1+6)^(1/10)-1).

How to calculate Nominal Interest Rate?

With Compounding Periods (n) & Effective Interest Rate (EAR) we can find Nominal Interest Rate using the formula - Nominal Interest Rate or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1).

Let Others Know

✖

Facebook

Twitter

Copied!

: Value
: Unit

Nominal Interest Rate Formula

Nominal Interest Rate Example

Nominal Interest Rate Solution

Nominal Interest Rate Formula Elements

Other formulas in Interest Rate category

How to Evaluate Nominal Interest Rate?

FAQs on Nominal Interest Rate

Variable Name