Annual nominal rate of interest
Definition A nominal annual interest rate is sometimes called an annual percentage rate (APR). The corresponding monthly interest rate is called. 6. Page 7. a Suppose the annual nominal rate of interest on a bank certificate of deposit is 12 percent. What would be the effect of an inflation rate of 13 percent? BuyFind The net annual nominal interest rate is greater than the gross annual nominal interest rate: Net annual nominal interest rate = 0.72 x Gross annual nominal interest