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What is a "disaster"? What are three types of disasters? Give an example of each.
Average Annual Rate
A calculated mean that represents the per-year interest rate over the term of a loan or investment.
4 Year Returns
The total profit or loss on an investment over a period of four years.
Nominal Rate
The rate of interest before adjustments for inflation or other factors that affect the true cost of borrowing or the real yield on an investment.
Effective Rate
The actual interest rate on an investment or loan, taking into account the effect of compounding over a given period of time.
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