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What is a thematic appreciation test?
Nominal Rate
The stated interest rate of an investment or loan, not including the effect of compound interest or inflation adjustments.
Monthly Compounded
A method of calculating interest where the interest is added to the principal each month, resulting in interest earned on interest.
Nominal Rate
The stated interest rate of a bond or loan, not adjusted for inflation.
Compounded Annually
A method in which interest is calculated once per year and added to the total sum, affecting the principal for the next period.
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