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What causes a wire to become warm when current flows through it?
Effective Annual Rate
A financial metric that represents the equivalent annual interest rate taking compounding into account, thus providing a more accurate measure of interest earned or paid over a year.
Compounded Semi-Annually
Interest on an investment is calculated and added to the principal sum of the investment two times a year.
Effective Annual Rate
The real return on an investment after accounting for compounding interest over a year, often differing from the stated nominal rate.
Compounded Monthly
Interest calculation method where interest earned is added to the principal balance each month, affecting future interest calculations.
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