Define the Following Terms

question 52

Essay

Define the following terms
-level of analysis

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Definitions:

Annual Rate

The interest rate charged per year on a loan, or earned on an investment, not accounting for the effect of compounding within that year.

Actual Rate

The real interest rate or return rate earned on an investment, as opposed to the nominal or advertised rate.

Interest

The cost of borrowing money or the return on investment capital, usually expressed as a yearly percentage.

Credit Card

A small plastic or metal card issued by a bank that allows the holder to purchase goods or services on credit.