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Interest Rate
The cost of borrowing money, typically expressed as an annual percentage of the principal.
Loanable Funds
Funds available for borrowing, which consist of household savings and international capital flows.
Compounded Annually
Refers to the process of calculating interest on both the initial principal and the accumulated interest from previous periods on an annual basis.
Interest
The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.
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