TERMIUM Plus®

The Government of Canada’s terminology and linguistic data bank.

NOMINAL RATE DISCOUNT [1 record]

Record 1 2010-04-27

English

Subject field(s)
  • Financial and Budgetary Management
CONT

Real discount rate refers to the rate of interest that has been adjusted for inflation while the nominal rate of discount refers to the annual rate of interest that includes the inflation rate as a part of it. In other words, nominal rate of discount is the unajusted rate while the real rate of discount is the rate adjusted for inflation.

CONT

A nominal discount rate that reflects expected inflation should be used to discount nominal benefits and costs.

OBS

The proper discount rate to use depends on whether the benefits and costs are measured in real or nominal terms.

French

Domaine(s)
  • Gestion budgétaire et financière
CONT

Le taux d’actualisation nominal est une combinaison complexe de taux d’intérêt et de variables fiscales. La détermination du taux d’actualisation dépend de la manière dont l’entreprise se procure des fonds pour financer son investissement.

Spanish

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