Examlex
Briefly outline the theory or hypothesis which best explains the origin of the solar system.
Interest Rate
Interest rate is the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.
Nominal Rate
The stated interest rate on a loan or investment, not accounting for inflation or compounding of interest.
Compounded Monthly
A method of calculating interest where the accrued interest is added to the principal sum each month, leading to interest on interest.
Effective Annual Rate
The interest rate that is adjusted for compounding over a given period. Essentially, it is the rate that accurately reflects the annual cost of borrowing or the annual return on investment.
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