The interest rate shown on the main screen is the Nominal Annual Rate (NAR). This is the rate quoted for most financial arrangements. You can also enter or calculate corresponding interest rates, such as the Effective Annual (EAR), Periodic (PR), and Daily (DR) rate.
Learn about Interest Rates.
To enter an interest rate
- Enter the rate as a percentage (e.g., 8.5) in the Nominal Annual Rate field or click the
expansion adorner at the right of the field to display a dialog of interest rates. In this dialog you can enter a Nominal Annual, Effective Annual, Periodic, or Daily Rate.
Interest rates can be entered with up to nine digits to the right of the decimal. Rates are stored as entered. The NAR and EAR are displayed rounded to the third decimal place and the PR and DR are displayed rounded to the fifth decimal place. If you enter a NAR of 12.123456789 percent, it will be displayed as 12.123 percent but will calculate using 12.123456789 percent. When you edit the rate, it will display all digits.
When you click the expansion adorner in the Nominal Annual Rate field and enter a rate, the three corresponding interest rates are automatically calculated and displayed in the dialog. - If you enter a rate in the dialog, click [Tab] to accept changes and return to the cash flow data window.
To calculate an interest rate
- Press [U] in the Nominal Annual Rate field or any of the rate fields in the expanded dialog. The word Unknown will appear in the Nominal Annual Rate field.
- Enter the information for the schedule you are working on.
- Press [F9], [Ctrl]+[U], or click the Calculate button on the ribbon. The calculated interest rate will be displayed in the Nominal Annual Rate field. Click the expansion adorner to view the other calculated rates.