Examlex
All of the following descriptive statistics are appropriate measures for ordinal-scaled items, except:
Interest Rate
The cost of borrowing money or the amount paid for the use of funds, expressed as a percentage of the principal.
Effective Annual Rates
The effective annual rate (EAR) is the actual interest rate that an investment earns due to compounding over a given period, usually one year.
Nominal Rate
The interest rate before adjustments for inflation, representing the face value of financial products.
Compounded Monthly
A method of calculating interest where the accrued interest is added to the principal sum at the end of each month, leading to "interest on interest."
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