Nominal Rate: Nominal interest rate refers the interest rate to which a borrower is ready to pay and the lender is ready to receive. The nominal rate is the rate which is agreed and paid.
The real
(Effective Annual Rate): The effective interest rate refers to the rate of interest that is paid on an investment or loan or bonds after to take into consideration of compounding over a period of time.
(Annual Percentage Rate): The annual percentage rate refers to the rate of interest at which the annual simple interest is calculated.
To Identify: The interest which should be earned.
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Fundamentals of Corporate Finance (3rd Edition) (Pearson Series in Finance)
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