nomrr

Nominal rate of return

Syntax

Return = nomrr(Rate,NumPeriods)

Description

Return = nomrr(Rate,NumPeriods) calculates the nominal rate of return.

Examples

Calculate the Nominal Rate of Return

This example shows how to calculate the nominal rate of return based on an effective annual percentage rate of 9.38% compounded monthly.

Return = nomrr(0.0938, 12)

Return = 
0.0900

Input Arguments

Rate — Effective annual percentage rate

decimal

Effective annual percentage rate, specified as a decimal.

Data Types: double

NumPeriods — Number of compounding periods per year

scalar numeric

Number of compounding periods per year, specified as a scalar numeric.

Data Types: double

Output Arguments

Return — Nominal rate of return

numeric

Nominal rate of return, returned as a numeric.

More About

Nominal Rate of Return

The nominal rate of return is the percentage increase in the value of an investment over a specific period, not adjusted for inflation.

The nominal rate of return represents the raw return on an investment, which includes any income generated (such as interest, dividends, or capital gains) without taking into account the erosion of purchasing power due to inflation.

Version History

Introduced before R2006a