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Real Rate of Interest
The interest rate adjusted for inflation, reflecting the true cost of borrowing and the real yield to lenders or investors.
Inflation Rate
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling over time.
Real Rate of Return
The yearly rate of return on an investment, corrected for price changes stemming from inflation or external factors.
Annual Interest Rate
The percentage of the principal that is paid as interest to the lender over the course of one year, not accounting for compounding.
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