The nominal interest rate is the simple interest charged on a loan or paid on a deposit. Real interest is nominal interest after taking inflation’s effects into account. Economists, as well as lenders ...

Carol M. Kopp edits features on a wide range of subjects for Investopedia, including investing, personal finance, retirement planning, taxes, business management, and career development. Betsy began ...

Real rate of return adjusts for inflation, providing a true growth measure. S&P 500's real rate is 7.9%, versus a nominal 11.8%, due to inflation. Using real rates in retirement planning ensures ...

If you take out a loan for your business, you will pay the cost of borrowing in the form of an interest rate. Alternatively, if your business has a savings account, you will be paid an interest rate ...