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Compounded Daily
The process where interest is calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan, on a daily basis.
Compounded Semi-Annually
Interest calculated twice a year on the initial principal and the interest that has been previously accumulated.
Annual Percentage Rate
Annual Percentage Rate (APR) is the annualized interest rate charged to borrowers or earned by investors, including any fees or additional costs associated with the transaction.
Effective Annual Rate
The actual annual return on an investment or the actual annual cost of a loan, including the effect of compounding interest, as opposed to the nominal rate.
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