Examlex
Provide a short answer to each of these questions. Be sure to fully explain your answer.
-Describe how the separation of ownership and control came about.
Nominal Rate
the interest rate before adjustments for inflation, often cited in loan and savings agreements.
Compounded Annually
Interest on a loan or investment is calculated once a year, with each year’s interest added to the principal for the subsequent year’s interest calculation.
Compounded Annually
The process of earning interest on an investment where the accrued interest is added to the principal sum once per year.
Nominal Rate
The nominal rate is the interest rate stated on a loan or investment agreement, not accounting for inflation or other factors that affect the real rate of return.
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