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 ...

Multiple economic factors influence interest rates. Three types of interest rates, including real, nominal, and effective affect consumers' borrowing and investment choices. The nominal interest rate ...

When you want to generate income rather than equity growth, a debt security like bonds is your most likely choice. However, all bonds are not the same. Bonds pay different interest rates and carry ...

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 ...

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 ...

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 ...