Calculate Nominal and Effective Interest Rate

Online Calculator for Nominal and Effective Interest Rates: http://matrixlab-examples.com/savings-interest-calculator.html

Nominal and Effective Interest Rates are explained with an example. Formulas and full codes in Matlab are given.

To calculate the Nominal Interest Rate you need to know four parameters in advance: initial value or principal, final or future value, the number of compounding periods per year and the number of years.

To calculate the Effective Interest Rate you don’t need to know the number of compounding periods per year, but you do need the other three numbers.