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During language development, children exhibit overinclusion of instances within a category such as calling a tiger a cat. This is referred to as
Stated Interest Rate
The annual interest rate declared on a loan or investment, not accounting for compounding or other effects.
Quoted Interest Rate
The interest rate that a lender states or advertises, not accounting for the compounding of interest within a specific period.
Interest Payment
The payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at a particular rate.
Compounded
The process of generating earnings from previous earnings, calculated by applying the earnings rate not only to the principal but also to the accumulated earnings over past periods.
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