|1||Interest Rate Conversion Nominal vs. Effective Annual Rate|
|2||Nominal annual rate of interest||8 percent|
|3||Compounding frequency − semiannual||2|
|4||Effective annual rate of interest||8.16 percent|
|5||Nominal annual rate of interest||8 percent|
|6||Compounding frequency − quarterly||4|
|7||Effective annual rate of interest||8.24 percent|
Entry in Cell B4 is equal to sign EFFECT(B2,B3).
Entry in Cell B5 is equal to sign NOMINAL(B7,B6).