lifecontingencies (version 0.0.3)

nominal2Real: Function to calculate the nominal interest rate.

Description

This function evaluates the nominal k-periods interest rate from the effective yearly interest rate.

Usage

nominal2Real(interestRate, periods = 1)

Arguments

interestRate

Annual effective interest rate.

periods

Numbers of subperiods.

Value

• A numeric value is returned.

References

Broverman, S.A., Mathematics of Investment and Credit (Fourth Edition), 2008, ACTEX Publications.

See Also

real2Nominal

Examples

#a nominal percentage rate of 12% corresponds to an effective APR of
nominal2Real(interestRate=0.12, periods = 12)