Examlex
Explain briefly about converting between numbers and text.
Effective rate
The total compounded interest rate, expressed annually, that represents the actual financial cost of a loan or investment.
Compounded quarterly
Interest is recalculated every three months based on both the initial principal and previously earned interest, leading to exponential growth of an investment or debt.
Principal amount
The principal amount refers to the initial sum of money borrowed in a loan or invested, excluding any interest or additional fees.
Compounded quarterly
Refers to the calculation and addition of interest on a principal amount four times a year.
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