Examlex
Which of the following would not form a suitable buffer?
Equal Installments
Equal installments refer to payments of the same amount made periodically over the term of a loan or financing agreement.
Interest
The charge for borrowing money or the return on invested capital.
Nominal Annual Rate
The stated or face interest rate of a financial product, not adjusting for compounding or inflation over time.
Effective Annual Rate
This is the interest rate on an investment or loan that accounts for the effects of compounding over a given period, providing a more accurate picture of financial returns or costs.
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