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All organizations perform three basic business activities.List and describe these activities.
Nominal Rate
The interest rate set by the lending institution, not adjusted for inflation, representing the actual yearly cost of funds over the term of a loan.
Compounding Period
The period of time after which interest is credited to the depositor’s account for purposes of computing subsequent interest.
Interest Rate
The percentage charged on a loan or paid on savings over a specific period, usually expressed as an annual percentage of the principal.
Invested Today
The action of allocating resources, usually money, in the present with the expectation of receiving a future return.
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