Examlex
Describe two examples of how pragmatic rules may vary across cultures.
Nominal Rate
The interest rate before adjustments for inflation, as opposed to the real rate which is adjusted for inflation.
APR
The Annual Percentage Rate (APR) is a measure of the cost of borrowing that includes interest and other fees, shown as a yearly rate.
Compound Interest
The concept of earning interest on previously earned interest. A sum earning compound interest grows exponentially over time.
Interest
The expense associated with taking out a loan or the earnings from an investment, usually quantified as a percent of the initial amount.
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