Examlex
Which of the following best describes a meta tag?
Effective Rate
The interest rate for a loan or financial product recalculated from its nominal rate to represent an annual compound interest rate, paid in arrears.
Nominal Interest
The stated interest rate of a bond or loan, not accounting for inflation or the compounding of interest.
Compounded Quarterly
Interest calculation where the interest earned over a quarter is added to the principal for the calculation of future interest, effectively compounding every three months.
Effective Rate
The actual interest rate of an investment or loan, taking into account the compounding of interest.
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