The Interest Rate Expressed as If It Were Compounded Once

question 64

Multiple Choice

The interest rate expressed as if it were compounded once per year is called the _____ rate.

• A) stated interest
• B) compound interest
• C) effective annual
• D) periodic interest
• E) daily interest

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in an open market.

Interest Rate

The cost of borrowing money or the return on investment for savings and loans, expressed as a percentage of the principal.

Enduring Popularity

a state whereby something maintains widespread approval, support, or use over a long period.

Interest Rate

The piece of a loan accruing interest charges against the borrower, usually depicted as an annual percentage of the outstanding loan quantity.