Examlex
We are consciously aware of which of the following for a dozen or so seconds?
Effective Annual Rate
The effective annual rate is the interest rate on a financial product restated from the nominal rate as an annual rate that takes into account compounding over a given period.
Nominal Annual Rate
The interest rate stated on a loan or financial product, not accounting for compounding or inflation over time.
Interest Payments
Periodic payments made to lenders or bondholders as compensation for lending their money.
Nominal Interest Rate
The stated interest rate of a bond or loan, not adjusted for inflation, representing the actual annual cost of borrowing.
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