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:
“Discourage litigation. Persuade your neighbors to compromise whenever you can. Point out to them how the nominal winner is often a real loser—in fees, expenses, and waste of time. As a peacemaker the lawyer has a superior opportunity of being a good man. There will still be business enough.”
—Abraham Lincoln (1809–1865)
“We women are not made for governing and if we are good women, we must dislike these masculine occupations; but there are times which force one to take interest in them mal gré bon gré, and I do, of course, intensely.”
—Victoria (1819–1901)
“This is the essential distinction—even opposition—between the painting and the film: the painting is composed subjectively, the film objectively. However highly we rate the function of the scenario writer—in actual practice it is rated very low—we must recognize that the film is not transposed directly and freely from the mind by means of a docile medium like paint, but must be cut piece-meal out of the lumbering material of the actual visible world.”
—Sir Herbert Read (1893–1968)