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What is nominal measurement?

 Jun 21, 2015

Best Answer 

 #1
avatar+118696 
+5

nominal is a normal English word.

https://www.google.com.au/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=nominal%20definition

 

It is used in mathematics but the exact meaning would depend on context

1)   If you get nominal change for a purchase it means you get very little change.

2)   If you nominal interest rate is 12% compounded monthly it means that this is not the real interest rate, it is just close enough for most purposes.

The real annual interest rate would be  approx 12.68%

(1.0112)1=0.1268250301319697

 Jun 21, 2015
 #1
avatar+118696 
+5
Best Answer

nominal is a normal English word.

https://www.google.com.au/webhp?sourceid=chrome-instant&ion=1&espv=2&ie=UTF-8#q=nominal%20definition

 

It is used in mathematics but the exact meaning would depend on context

1)   If you get nominal change for a purchase it means you get very little change.

2)   If you nominal interest rate is 12% compounded monthly it means that this is not the real interest rate, it is just close enough for most purposes.

The real annual interest rate would be  approx 12.68%

(1.0112)1=0.1268250301319697

Melody Jun 21, 2015

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