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nominal interest rate

   Also found in: Medical, Wikipedia 0.20 sec.
Nominal Interest Rate
The interest rate unadjusted for inflation.

Notes:
Not taking into account inflation gives a less realistic number.


Nominal interest rate
The interest rate unadjusted for inflation.

nominal interest rate
The stated rate of interest, exclusive of any compounding, that is paid on an investment. Annual interest of $80 on a $1,000 investment is a nominal rate of 8% whether the interest is paid in $20 quarterly installments, in $40 semiannual installments, or in an $80 annual payment. Use of nominal rates can be misleading when comparing returns from different investments. See also effective rate of interest.

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