Nominal Interest Rate Solution

STEP 0: Pre-Calculation Summary
Formula Used
Nominal Interest Rate or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1)
i = n*((1+EAR)^(1/n)-1)
This formula uses 3 Variables
Variables Used
Nominal Interest Rate or Stated Rate - Nominal Interest Rate or Stated Rate refers to the interest rate before taking inflation into account.
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 2.14814 <-- Nominal Interest Rate or Stated Rate
(Calculation completed in 00.004 seconds)

Credits

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Softusvista Office (Pune), India
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Bhilai Institute of Technology (BIT), Raipur
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2 Interest Rate Calculators

Nominal Interest Rate
Go Nominal Interest Rate or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1)
Annual Percentage Rate
Go Annual Percentage Rate = Monthly Periodic Rate*12

Nominal Interest Rate Formula

Nominal Interest Rate or Stated 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 or Stated 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 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) & 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 or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1). Compounding Periods is the number of times compounding will occur during a period & 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 or Stated Rate = Compounding Periods*((1+Effective Interest Rate)^(1/Compounding Periods)-1). To calculate Nominal Interest Rate, you need Compounding Periods (n) & Effective Interest Rate (EAR). With our tool, you need to enter the respective value for Compounding Periods & 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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