Nominal Interest Rate (Investments & Retirement) - Definition, Examples, Advice | Bolder Money

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Definition

The stated interest rate on a loan or investment without adjusting for inflation.

What to consider

Focus on the stated rate without adjusting for inflation.
Compare nominal rates when shopping for loans.
Keep in mind that the real rate might differ once inflation is considered.

Real world scenarios

Comparing loan offers, Mia focused on the nominal interest rate, understanding it was the stated rate before adjustments for inflation.

Related terms

Investments & Retirement

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