Nominal Interest Rate

In finance and economics, nominal interest rate or nominal rate of interest refers to two distinct things: the rate of interest before adjustment for inflation (in contrast with the real interest rate); or, for interest rates "as stated" without adjustment for the full effect of compounding (also referred to as the nominal annual rate). An interest rate is called nominal if the frequency of compounding (e.g. a month) is not identical to the basic time unit (normally a year).

Read more about Nominal Interest Rate:  Nominal Versus Real Interest Rate, Nominal Versus Effective Interest Rate

Famous quotes containing the words nominal, interest and/or rate:

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    Abraham Lincoln (1809–1865)

    The North has no interest in the particular Negro, but talks of justice for the whole. The South has not interest, and pretends none, in the mass of Negroes but is very much concerned about the individual.
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    At the rate science proceeds, rockets and missiles will one day seem like buffalo—slow, endangered grazers in the black pasture of outer space.
    Bernard Cooper (b. 1936)