Meaning of the word "nominal interest rate" in English
What does "nominal interest rate" mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.
nominal interest rate
US /ˈnɑːmɪnl ˈɪntrəst reɪt/
UK /ˈnɒmɪnl ˈɪntrəst reɪt/
Noun
the stated interest rate on a loan or investment, without taking inflation into account
Example:
•
The bank offered a 5% nominal interest rate on the savings account.
•
To calculate the real return, you need to adjust the nominal interest rate for inflation.
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