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Explain why "means-end" thinking can lead to criminal or corrupt acts.
Effective Interest Rate
The actual return on an investment, taking into account the effect of compounding interest as opposed to the nominal rate.
Contract Interest Rate
The interest rate specified in a loan agreement or contract, typically fixed for the life of the loan.
Face Value
The nominal value or dollar value of a security stated by the issuer, also known as par value, especially relevant for bonds and stock certificates.
Market Rate
The prevailing interest rate available in the marketplace on investments or loans, subject to changes based on supply and demand and economic conditions.
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