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Nominal Muster Roll PDF  Form

Nominal Muster Roll PDF Form

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Instructions and help about nominal roll form

let's say that you agree to lend me some money say you're agreed to lend me 100 and i ask you all right do i just have to pay you back 100 and you say no no you want some interest and i say how much interest and you say that you are going to charge me five percent per year interest so one way to think about it is if i borrow 100 today so 100 today in a year i'm going to have to pay you back 100 times i'm going to have to grow it by 5 so that's the same thing as multiplying it by 1.05 this is how much i'm going to have to pay back let me write this down this is borrow this is what i'm going to have to pay back and so this interest rate that just the face value of how much more i'm going to have to pay back this is known as the nominal interest rate nominal interest rate and we can compare this to the real interest rate and you might say why do we need some other type of interest rate well even though on the face value i'm paying you back five percent

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