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Perpetuity
A type of annuity that pays a fixed amount of money indefinitely, with no end date.
Interest Rates
The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal.
Nominal Rate
The interest rate set by the lending institution, not adjusted for inflation, representing the actual yearly cost of funds over the term of a loan.
Compounding Period
The period of time after which interest is credited to the depositor’s account for purposes of computing subsequent interest.
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