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Nominal Interest Rate Solution

STEP 0: Pre-Calculation Summary
Formula Used
nominal_interest_rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1)
i = n*((1+EAR)^(1/n)-1)
This formula uses 2 Variables
Variables Used
Compounding Periods- Compounding Periods is the number of times compounding will occur during a period.
Effective Interest Rate- The effective interest rate is the true rate of interest earned.
STEP 1: Convert Input(s) to Base Unit
Compounding Periods: 10 --> No Conversion Required
Effective Interest Rate: 6 --> No Conversion Required
STEP 2: Evaluate Formula
Substituting Input Values in Formula
i = n*((1+EAR)^(1/n)-1) --> 10*((1+6)^(1/10)-1)
Evaluating ... ...
i = 2.14814044039067
STEP 3: Convert Result to Output's Unit
2.14814044039067 --> No Conversion Required
FINAL ANSWER
2.14814044039067 <-- Nominal Interest Rate or Stated Rate
(Calculation completed in 00.016 seconds)

8 Other formulas that you can solve using the same Inputs

EMI
equated_monthly_installment = Loan Amount*Interest Rate*((1+Interest Rate)^Compounding Periods/((1+Interest Rate)^Compounding Periods-1)) Go
Monthly Mortgage Payment
monthly_payment = (Mortgage Amount*Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods-1) Go
Monthly Payment
monthly_payment = (Loan Amount*Interest Rate*(1+Interest Rate)^Compounding Periods)/((1+Interest Rate)^Compounding Periods)-1 Go
Certificate of Deposit
certificate_of_deposit = Initial Deposit Amount*(1+(Annual Nominal Interest Rate/Compounding Periods))^(Compounding Periods*Number of Years) Go
Future Value of a Present Sum when Compounding Periods are given
future_value = Present Value*(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods) Go
Present Value of a Future Sum when compounding periods are given
present_value = Future Value/(1+(Rate of Return/Compounding Periods))^(Compounding Periods*Number of Periods) Go
Loan Amount
loan_amount = (Annuity Payment/Interest Rate)*(1-(1/(1+Interest Rate)^Compounding Periods)) Go
Annual Percentage Yield
annual_percentage_yield = (1+(Stated annual interest rate/Compounding Periods))^Compounding Periods-1 Go

Nominal Interest Rate Formula

nominal_interest_rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1)
i = n*((1+EAR)^(1/n)-1)

How to Calculate Nominal Interest Rate?

Nominal Interest Rate calculator uses nominal_interest_rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1) to calculate 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 and is denoted by i symbol.

How to calculate Nominal Interest Rate using this online calculator? To use this online calculator for Nominal Interest Rate, enter Compounding Periods (n) and Effective Interest Rate (EAR) and hit the calculate button. Here is how the Nominal Interest Rate calculation can be explained with given input values -> 2.14814 = 10*((1+6)^(1/10)-1).

FAQ

What is Nominal Interest Rate?
The nominal interest rate refers to the interest rate before taking inflation into account and is represented as i = n*((1+EAR)^(1/n)-1) or nominal_interest_rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1). Compounding Periods is the number of times compounding will occur during a period and The effective interest rate is the true rate of interest earned.
How to calculate Nominal Interest Rate?
The nominal interest rate refers to the interest rate before taking inflation into account is calculated using nominal_interest_rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1). To calculate Nominal Interest Rate, you need Compounding Periods (n) and Effective Interest Rate (EAR). With our tool, you need to enter the respective value for Compounding Periods and Effective Interest Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.
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