The amount you pay for something stated in terms of the its cost in the year you make the purchase. For example, if you assume that the only reason the cost of something changes is inflation, the nominal cost will increase in direct proportion to the inflation rate. Stated differently, the nominal cost is equal to the The amount something costs when stated in terms of its cost in a single year regardless of the year in which it is actually purchased. For example, if you assume that the only reason the cost of som... More after adding in the impact of inflation.
I am also a retired property-casualty A professional who assesses and manages the risks of financial investments, insurance policies and other potentially risky ventures. Source: www.investopedia.com/terms/a/actuary.asp More (someone who works with the math and statistics related to insurance). I spent a significant portion of my career building statistical models of all of the financial risks of an insurance company and interpreting their findings to help senior management make better financial decisions. I retired in my late 50’s, which one of my daughter’s friends thought clearly qualified me to write this blog. Read more about Susie Q