What is the meaning of Nominal (stated) interest rate?

Nominal (stated) interest rate is a rate of interest quoted for a year that has not been adjusted for frequency of compounding. If interest is compounded more than once a year, the effective interest rate will be higher than the nominal rate.

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APABarry Goldsmith. (2010). Nominal (stated) interest rate. Retrieved September 23, 2026, from http://smartdefine.org/nominal_(stated)_interest_rate/definitions/1159143
ChicagoBarry Goldsmith. 2010. "Nominal (stated) interest rate" http://smartdefine.org/nominal_(stated)_interest_rate/definitions/1159143 (accessed September 23, 2026).
HarvardBarry Goldsmith 2010, Nominal (stated) interest rate, Smart Define, viewed 23 September, 2026, <http://smartdefine.org/nominal_(stated)_interest_rate/definitions/1159143>.
MLABarry Goldsmith. "Nominal (stated) interest rate" 21 October 2010. Web. 23 September 2026. <http://smartdefine.org/nominal_(stated)_interest_rate/definitions/1159143>