Finance
Turn an APY into a stated rate
=NOMINAL(B1,12)How it works in Excel
- B1 is the effective yearly rate.
- 12 is how many times a year interest is added.
- EFFECT converts the other way.
The idea in general
It strips out the extra you get from interest earning interest.
What I assumed
- The effective rate is in B1 and interest is added monthly.
Check the result on your own data before relying on it.