Examlex
If we calculate a periodic interest rate,say a monthly rate,in order to get the simple annual rate,we can multiply the periodic rate by the number of periods within a year.
Rates of Return
The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.
EAR
Effective Annual Rate, a measure of interest that takes into account the compounding of interest over time.
Borrower
An individual, company, or entity that receives funds from another party with the agreement to repay the principal amount along with any agreed-upon interest.
Annualized (Geometric)
Annualized (geometric) refers to the method of calculating an average rate of return that accounts for the compounding effect over a period.
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