The percentage by which the money the borrower pays back exceeds the money that was borrowed is called as

The nominal interest rate is defined as the percentage increase in money a borrower pays a lender for the use of borrowed funds [2]. It represents the stated interest rate on a loan or investment without adjusting for inflation. For example, if a person borrows $100 at an 8% interest rate, they must repay the original $100 plus an additional $8, totaling $108; this 8% is the nominal rate [2]. While the real interest rate represents the effective cost or return after adjusting for inflation, the nominal rate is the actual numerical percentage seen on loan agreements or bank signs [3]. In contrast, the bank rate is a specific tool used by the central bank to lend to domestic banks [1], and terms of credit encompass broader requirements like collateral and documentation. Therefore, the simple percentage by which repayment exceeds the principal is the nominal interest rate.

Sources

1. [2] https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-financial-sector/nominal-v-real-interest-rates-ap/a/nominal-vs-real-interest-rates
2. [3] https://dfpi.ca.gov/consumers/glossary-of-financial-terms/
3. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 2: Money and Banking- Part I > 2.28 Liquidity Trap > p. 111