Examlex
Governments can make trading easier and more beneficial by:
Stated Rate
The annual interest rate of a bond or loan without adjusting for compounding or other factors, often differing from the effective rate or annual percentage rate (APR).
Annual Percentage Rate
The annual rate charged for borrowing or earned through an investment, which represents the actual yearly cost over the term of a loan.
Effective Annual Rate
The interest rate on an investment or loan that is annualized and takes compounding into account, providing a full picture of the annual interest.
Effective Annual Rate
The real interest rate a savings account, loan, or investment earns, once compounding has been taken into consideration.
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