Financial Modelling Downloads
These are some useful financial modelling files that I’ve made available for download – please send any comments or bug reports to firstname.lastname@example.org.
Interest Rate Converter
Interest rates are quoted either as nominal rates (NACM) or annual effective rates (NACA), but can also be quoted as Quarterly (NACQ) or Semi-Annual (NACS).
In order to compare rates, you must ensure they are quoted on the same basis – 5.00% NACM is actually 5.12% NACA.
The C in the names stands for ‘Compounding’ and dictates when the interest earned is added to the balance. If interest is compounded monthly, the next month’s interest will be calculated on the previous month’s balance plus the interest charged or earned in that prior month!
The attached Excel file allows you to convert between NACM, NACQ, NACS and NACA.
Excel shortcuts are exceptionally useful! In this attachment, I’ve compiled some of my most commonly used shortcuts. Please let me know if you think I’ve left out anything useful!