Confusingly, in the context of inflation, 'nominal' has a different meaning. A nominal rate can mean a rate before adjusting for inflation, and a real rate is a constant-prices rate. The Fisher equation is used to convert between real and nominal rates.
https://en.wikipedia.org/wiki/Nominal_interest_rate
A nominal interest rate for compounding periods less than a year is always lower than the equivalent rate with annual compounding (this immediately follows from elementary algebraic manipulations of the formula for compound interest).
https://en.wikipedia.org/wiki/Nominal_interest_rate
DEFINITION of 'Real Interest Rate'. An interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower, and the real yield to the lender. The real interest rate of an investment is calculated as the amount by which the nominal interest rate is higher than the inflation rate. Real Interest Rate = Nominal Interest Rate-Inflation (Expected or Actual). Next Up.
http://www.investopedia.com/terms/r/realinterestrate.asp
DEFINITION of 'Nominal Interest Rate'. The interest rate before taking inflation into account. The nominal interest rate is the rate quoted in loan and deposit agreements. The equation that links nominal and real interest rates is: (1 + nominal rate) = (1 + real interest rate) (1 + inflation rate). It can be approximated as nominal rate = real interest rate + inflation rate.
http://www.investopedia.com/terms/n/nominalinterestrate.asp
For example, if you are earning 4% interest per year on the savings in your bank account, and inflation is currently 3% per year, then the real interest rate you are receiving is 1% (4% - 3% = 1%). The real value of your savings will only increase by 1% per year, when purchasing power is taken into consideration.
http://www.investopedia.com/terms/r/realinterestrate.asp
The nominal interest rate (also known as an Annualised Percentage Rate or APR) is the periodic interest rate multiplied by the number of periods per year.
https://en.wikipedia.org/wiki/Nominal_interest_rate
Example 1: A nominal interest rate of 6%/a compounded monthly is equivalent to an effective interest rate of 6.17%. Example 2: 6% annually is credited as 6%/12 = 0.5% every month. After one year, the initial capital is increased by the factor (1+0.005) 12 ≈ 1.0617.
https://en.wikipedia.org/wiki/Nominal_interest_rate
The interest rate on an investment or loan without adjusting for inflation. The nominal interest rate is simply the interest rate stated on the loan or investment agreement. If one makes a loan at a high nominal interest rate, this does not guarantee a real profit.
http://financial-dictionary.thefreedictionary.com/nominal+interest+rate
nominal interest rate. The stated rate of interest, exclusive of any compounding, that is paid on an investment. Annual interest of $80 on a $1,000 investment is a nominal rate of 8% whether the interest is paid in $20 quarterly installments, in $40 semiannual installments, or in an $80 annual payment. Use of nominal rates can be misleading when comparing returns from different investments. See also effective rate of interest.
http://financial-dictionary.thefreedictionary.com/nominal+interest+rate
The effective interest rate is always calculated as if compounded annually. The effective rate is calculated in the following way, where r is the effective rate, i the nominal rate (as a decimal, e.g. 12% = 0.12), and n the number of compounding periods per year (for example, 12 for monthly compounding):
https://en.wikipedia.org/wiki/Nominal_interest_rate
nominal interest rates definition
A nominal interest rate is the periodic interest rate multiplied by the number of periods per year.