NOMINAL

Updated 2023-10-11 13:01:17.127000

Syntax

SELECT [westclintech].[wct].[NOMINAL] (
   <@Effect_rate, float,>
 ,<@Npery, int,>)

Description

Use the scalar function NOMINAL to calculate the annual nominal interest rate

Arguments

@Effect_rate

the effective rate of interest. @Effect_rate is an expression of type float or of a type that can be implicitly converted to float.

@Npery

the number of compounding periods per year. @Npery is an expression of type float or of a type that can be implicitly converted to float.

Return Type

float

Remarks

@Npery is truncated to an integer.

if @Effect_rate <= 0 or if @Npery <= 0 then wct.NOMINAL returns an error.

NOMINAL is calculated using the following formula:

NOMINAL = ((1+@Effect_rate)^(1/@Npery)-1)*@Npery

Examples

SELECT wct.NOMINAL(0.0407415429197906, 12);

Here is the result set.

{"columns":[{"field":"column 1","headerClass":"ag-right-aligned-header","cellClass":"ag-right-aligned-cell"}],"rows":[{"column 1":"0.0400000000000009"}]}