nominal rate
Noun
The rate of interest received on an investment (return) or paid for borrowing (cost) over any given period, generally expressed annually, as a function of the face value (nominal amount) of an investment or a loan without taking any other costs into account or the compounding of interest – it is the rate that is applied to arrive at simple interest.
Synonym(s):
- interest rate; periodic nominal rate; periodic rate of interest; stated rate.