Examlex
In the following diagram,what is A?
Effective Annual Rate
The annual return on an investment or loan taking compounding into account, expressed as a percentage.
Compounded Annually
This is an interest calculation method where interest is added to the principal once a year.
Effective Rate
The actual interest rate of an investment or loan, taking into account the effects of compounding.
Compounded Semi-Annually
Interest calculation method where the interest is added to the principal sum twice a year, causing the interest to earn interest.
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