Examlex
Which of the following options demonstrates correct sentence structure?
Effective Rate
The effective rate, also known as the annual equivalent rate, is the interest rate on an investment or loan that accounts for the effects of compounding over a given period.
APR
Annual Percentage Rate, which is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, credit card, etc.
Rate Of Return
The appreciation or depreciation of an investment over a set period, quantified as a percentage of the investment's starting value.
Cash Flows
The net amount of cash being transferred into and out of a business, reflecting operational, investing, and financial activities.
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