Examlex
Steady-state probabilities are independent of initial state.
Effective Annual Rate
The interest rate on an investment or loan on an annual basis, taking compounding into account, providing a true reflection of financial returns or costs.
Effective Annual Rate
The interest rate on an investment or loan that considers compounding over a specified period, usually yearly.
Nominal Rate
The interest rate unadjusted for inflation, expressing the literal annual cost of credit or return on investment.
Nominal Rate
The reported percentage rate without taking inflation into account, representing the actual yearly cost of funds to the borrower.
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