Match the items below with their descriptions:
Art-based; Matching
Definitions:
Annually Compounded
An investment or interest calculation method where the interest earned over the year is added to the principal at year-end, affecting the amount earned the following year.
Nominal Rate
The nominal rate refers to the interest rate stated on a loan or investment agreement before adjusting for inflation or other factors.
Annually Compounded
The process of calculating interest on both the initial principal and the accumulated interest from previous periods, once per year.
Nominal Interest Rate
The interest rate before adjustments for inflation or other factors that affect the real value of money.
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