Complete

question 51

Short Answer

Complete:
$$\begin{array} { | c | c | c | c | c | } \hline \text { PRODUCT } & \text { Cost in } 2017 & \text { Cost in 2018 } & \begin{array} { c } \text { Amount of } \$ \\\text { Inc/Dec }\end{array} & \begin{array} { c } \text { Percent Change (round to } \\\text { hundredths) }\end{array} \\\hline \text { Time } & \$ 15.50 & \$ 18.25 & \mathrm {~A} & \mathrm {~B} \\\hline\end{array}$$

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Definitions:

Effective Annual Rate

The real interest rate on an investment or loan, considering the effects of compounding over a year.

Effective Annual Rate

The yield on a loan or investment taking into account the impact of compounding throughout a year.

Compounded

In finance, referring to the process where interest is calculated on the initial principal and also on the accumulated interest from previous periods.

Stated Interest

The annual interest rate declared on a financial instrument, such as a loan or bond, not accounting for compounding or fees.