Examlex
Conversion is the process of changing from the old system to the new system.
Nominal rate
An interest rate or return quoted on an investment or loan, not adjusted for inflation or other factors.
Effective rate
The total compounded interest rate, expressed annually, that represents the actual financial cost of a loan or investment.
Compounded quarterly
Interest is recalculated every three months based on both the initial principal and previously earned interest, leading to exponential growth of an investment or debt.
Principal amount
The principal amount refers to the initial sum of money borrowed in a loan or invested, excluding any interest or additional fees.
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