Can anyone explain the link/ difference between the nominal and effective rate of interest using this notation. Diagrams appreciated.

2.2 NOMINAL RATES OF INTEREST Now consider transactions for a term of length h time units, where h> 0 and need not be an integer. We define ih(t), the nominal rate of interest per unit time on transactions of term h beginning at time t, to be such that the effective rate of interest for the period of length h beginning at time t is hih(t). Therefore, if the sum of C is invested at time t for a term h, the sum to be received at timet+his, by definition, C1 hin)] If h - 1, the nominal rate of interest coincides with the effective rate of interest for the period to 1, so h(t) i(t) (2.2.2) In many practical applications, ih(t) does not depend on t, in which case we may write ih(t) -ih for all t (2.2.3)