Nominal Interest Rate

A rate of return in current-dollar terms that does not reflect expected changes in the price levels.

For example, if you borrow U.S. $100,000 and you are given an interest rate of 10%, then when the loan is paid back you will be paying U.S. $110,000. Note that the nominal interest rate does not reflect inflation, as such the real rate of return could be different depending on how much inflation has either increased or decreased by the time the loan is due to be paid back.