The nominal interest an investment or a loan is simply the stated rate on which interest payments are calculated this is the rate on which savings secure interest over a period of time. Pure rate of interest is the amount charged by the lender in the case where there are no possibilities of the fall or expectation of inflation. Deducted inflation rate of interest in the inflationary period lenders recognize that they are paid less in the form of interest so to cover the laws they charge higher interest in a high inflation period.