Content deleted Content added
m →Nominal versus effective interest rate: http→https for Google Books and Google News using AWB |
No edit summary Tags: Mobile edit Mobile app edit |
||
Line 1:
In finance and economics, '''nominal interest rate''' or '''nominal rate of interest''' refers to two distinct things:
# the rate of [[interest]]
# for interest rates "as stated" without adjustment for the full effect of [[compound interest|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).
| |||