Examlex
Which of the following is true of moderators?
Nominal Rate
The stated interest rate of a financial instrument, without adjustment for inflation or compounding frequencies.
Compounded Monthly
The method of computing interest that includes both the original amount and the interest accrued over past months, applied each month.
Annual Nominal Rate
The annual rate of interest without taking into account the compounding of interest within that year, not reflecting the actual interest earned or paid.
Monthly Compounding
Interest calculation method where interest is added to the principal sum at the end of each month, compounding the amount over time.
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