## NOMINAL Function

The NOMINAL function in Google Sheets calculates the nominal annual interest rate given the effective rate and the number of compounding periods per year.

### Syntax

```
NOMINAL(effective_rate, periods_per_year)
```

`effective_rate`

: The effective annual interest rate. This is a required parameter.`periods_per_year`

: The number of compounding periods per year. This is a required parameter.

### Examples

**Nominal Rate Calculation**

Calculate the nominal interest rate for an effective rate of 5.1% compounded monthly:

```
=NOMINAL(5.1%, 12)
```

This will output approximately 4.98%.

### Notes

- The nominal rate is the interest rate before compounding is taken into account.