lifecontingencies (version 0.0.6)

nominal2Real: Function to calculate the nominal interest rate.

Description

This function evaluates the nominal m-periods interest rate (or the discount rate) given the effective yearly interest rate.

Usage

nominal2Real(i, m = 1, type="interest")

Arguments

i

Nominal interest rate.

m

Numbers of compounding periods.

type

Either interest rate or discount rate

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(i=0.12, m = 12, "interest")