Communication

8 relations: Compound interest, Currency, Effective interest rate, Inflation, Interest, Lump sum, Principles of Corporate Finance, Real interest rate.

Compound interest

Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on interest.

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Currency

A currency (from curraunt, "in circulation", from currens, -entis), in the most specific use of the word, refers to money in any form when in actual use or circulation as a medium of exchange, especially circulating banknotes and coins.

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Effective interest rate

The effective interest rate (EIR), effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the interest rate on a loan or financial product restated from the nominal interest rate as an interest rate with annual compound interest payable in arrears.

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Inflation

In economics, inflation is a sustained increase in price level of goods and services in an economy over a period of time.

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Interest

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum (i.e., the amount borrowed), at a particular rate.

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Lump sum

A lump sum is a single payment of money, as opposed to a series of payments made over time (such as an annuity).

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Principles of Corporate Finance

Principles of Corporate Finance is a reference work on the corporate finance theory edited by Richard Brealey, Stewart Myers, and Franklin Allen.

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Real interest rate

The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation.

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Redirects here:

Nominal annual interest, Nominal annual interest rate, Nominal annual rate.

References

[1] https://en.wikipedia.org/wiki/Nominal_interest_rate

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