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Characteristics of the market affect the amount of external information search.
Effective Annual Rate
The interest rate that reflects the compounding effects within a year, providing a true reflection of the return on investment.
Quoted Rates
The interest rates that lenders advertise or offer to potential borrowers for specific loan products.
Life Insurance Policy
A contract between an insurer and a policyholder where the insurer pays a designated beneficiary a sum of money upon the death of the insured person.
Lump Sum
A single payment made at a particular time, as opposed to a series of payments made over time.
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