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Q: what is inflation , how it is related to interest rate 3 example from all countries
A: please find the answer below.
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- It refers to the actual or exact rate of interest earned on the principal during a one year period. A Nominal Rate of interest B) Compound Interest D Simple Interest Effective Rate of InterestWhenever the interest charge for any interest period (a year, for example) is based on the remaining principal amount plus any accumulated interest charges up to the beginning of that period, the interest is said to be: a. effective interest b. compound interest c. simple interest d. nominal interest e. none of the choicesWhen a loan is amortized, it means: a. The principal is never repaid, only interest b. The principal and interest are paid off by the borrower over the life of the loan c. The borrower is in default d. The interest is due entirely at the maturity date
- A financial institution (loan shark ) is willing to lend you $400. You pay $450 after one week. a) What is the nominal interest rate b) What is the effective annual interest rateFor credit card accounts, the interest rate is normally expressed as the Annual Percentage Rate. This interest rate is considered effective. a True b Falsesubquestion d, e, f
- The return a lender receives for allowing borrowers the use of their savings for one year, calculated as a percentage of the amount borrowerd a- desinflation b- real interest rate c-nominal interes rate d- interest ratepart D E F GWhat part of saving investments should not be spent? Interest Base amount All of the above None of the above