Examlex
The price of one good divided by the price of another good is a
Real Rate of Return
The annual percentage profit earned on an investment, adjusted for changes in prices due to inflation or other external effects.
Effective Annual Rate
The interest rate on a loan or investment, adjusted for the effect of compounding over a given period.
Compounded Annual
The process of calculating interest on both the initial principal and the accumulated interest from previous periods on a deposit or loan.
Nominal Rates
The stated interest rate on a loan or investment, not accounting for inflation or compounding effects.
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