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Two balloons are at the same temperature and pressure, and contain equal volumes of gas, but one is floating, and the other is not. The reason for this behavior is that:
Compound Annual Rate
The rate at which an investment grows annually when interest is reinvested to earn additional interest.
Nominal Rate
The interest rate before adjustments for inflation or other factors, often referred to as the stated or face interest rate.
Compounded Quarterly
A method of calculating interest where the accrued interest is added to the principal sum every quarter, thus increasing the base for the next interest calculation.
Nominal Rate
The quoted interest rate on a loan or investment, not adjusting for the effect of compounding or inflation.
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