When analyzing a loan or an investment, it can be difficult to get - TopicsExpress

When analyzing a loan or an investment, it can be difficult to get a clear picture of the loans true cost or the investments true yield. There are several different terms used to describe the interest rate or yield on a loan, including annual percentage yield, annual percentage rate, effective rate, nominal rate, and more. Of these, the effective interest rate is perhaps the most useful, giving a relatively complete picture of the true cost of borrowing.

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