Sentences with phrase «advertised nominal interest»

Not exact matches

The nominal interest rate is generally the one advertised by the institution backing the loan or investment.

Calculating the effect of inflation on the interest rate of a loan results in a figure called the real interest rate, which is roughly equal to the difference between a loan's advertised interest rate, called the nominal rate, and the rate of inflation:

In this case, the nominal or stated rate is the rate the lender advertises, and it is the basic interest rate the consumer pays on the loan.

Advertised interest rates are typically nominal rates that are the annual interest rates disregarding any add - on fees and compounding.

The annual percentage rate, usually shown next to the advertised and called «APR», or nominal, interest rate, is always higher than the actual, or effective, loan interest rate because it annualizes the fees and costs associated with the loan.