Examlex
A dietitian is working with a client to help her improve her fiber intake. Which recommendation would the dietitian most likely give?
Effective Rate
The effective rate is the interest rate on a loan or investment, adjusted for the actual number of compounding periods per year, giving a true annual rate.
Compounded Nominal Rate
The rate at which interest is calculated on the initial principal and previously accumulated interest over a specific time period without considering the inflation.
Effective Rate
The annual interest rate on a loan or investment, taking into account the effect of compounding, as opposed to the nominal rate which does not.
Annuity
A financial scheme that guarantees a set sequence of disbursements to an individual, frequently used to secure income in retirement.
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