interest Nominal

Interface

InterestNominal

Calculates the nominal annual interest rate, given the effective rate and the number of compounding periods per year.

The function is based on the following equation:

Example 1

#include <iostream>
 
#include <codecogs/finance/banking/interestnominal.h>
 
int main(int argc, char *argv[])
{
  double rate;
 
  printf("Effective rate\tPeriods\tNominal rate\n");
  for (double a=0.0025; a<0.1; a+=0.005) 
  {
    rate=Finance::Banking::interestNominal(a, 4);
    printf("%f\t%i\t%f\n", a, 4, rate);
  }  
  return 1;
}

Output:

Effective rate  Periods Nominal rate
0.002500        4       0.002498
0.007500        4       0.007479
0.012500        4       0.012442
0.017500        4       0.017386
0.022500        4       0.022313
0.027500        4       0.027221
0.032500        4       0.032111
0.037500        4       0.036984
0.042500        4       0.041839
0.047500        4       0.046677
0.052500        4       0.051497
0.057500        4       0.056300
0.062500        4       0.061086
0.067500        4       0.065856
0.072500        4       0.070608
0.077500        4       0.075344
0.082500        4       0.080064
0.087500        4       0.084767
0.092500        4       0.089454
0.097500        4       0.094125

Parameters

effRate	The effective interest rate.
nper	The number of compounding periods per year.

Returns

The nominal annual interest rate.

Authors

James Warren (August 2005)

Source Code

Source code is available when you agree to a GP Licence or buy a Commercial Licence.

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