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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.
Compound Annual Rate
The rate at which an investment grows annually when interest is reinvested to earn additional interest.
Nominal Rate
The interest rate before adjustments for inflation or other factors, often referred to as the stated or face interest rate.
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