The percentage of a sum of money charged for it's used.
A representative interest rate is an interest rate that is exemplary or acrhetypical rate.
Nominal InterestA nominal interest rate is the interest rate that does not compensate for inflation. This is used in relation to "effective interest rate" or "real interest rate."" Real Interest Rate = Nominal Interest Rate - Inflation Rate " Improvement suggested by Palash Bagchi.
Compounding rate is the interest rate at which the rate grow faster than the simple interest on deposit or loan made. It is also said "interest on interest".
It can mean many things depending on the context. With respect to mortgage interest, your effective (net) interest rate will be nominal rate (quoted rate) less tax savings you can achieve when itemizing deductions on your 1040. net interest rate = nominal rate - (nominal rate * your income marginal tax rate) or net interest rate = nominal rate * (100% - your marginal income tax rate) It will be analogical calculation with respect to corporate bonds or treasury bonds, since interest on them is taxable on federal level. But here you will be worse off, not better off, since you will be making less due to taxes. For municipal bonds, which are exempt from federal income taxes - your nominal coupon interest will be equal to your net coupon interest when analyzing federal tax implications. I am pretty sure the term Net Interest can be used in many more situations.
Yes, the interest rate and rate of return are exactly the same.
A representative interest rate is an interest rate that is exemplary or acrhetypical rate.
A nominal interest rate is an interest rate that does not factor in the rate on inflation. Nominal interest rate could also refer to an interest rate that does not adjust for the full effect of compounding.
An effective annual interest rate considers compounding. When the principle is compounded multiple times each year the interest rate increased to be more than the stated interest rate. The increased interest rate is the effective annual interest rate.
Annual Percentage Rate. Refers to the Interest rate paid on a car loan.
Nominal InterestA nominal interest rate is the interest rate that does not compensate for inflation. This is used in relation to "effective interest rate" or "real interest rate."" Real Interest Rate = Nominal Interest Rate - Inflation Rate " Improvement suggested by Palash Bagchi.
If you mean "what is an interest change date" it means the date when the interest rate on a loan changes when the loan is an "adjustable" or "floating rate" rate loan. A lot of home loans, for example, are "ARMs" or adjustable rate mortgages, and change usually on an annual date. Some debts are so related to interest rates that they may change every time the interest rate it is "tied to" changes, such as loan where whatever the prime rate of interest is "from time to time" is the interest rate, and "from time to time" literally could mean once every day if it changes that often!
A real interest rate and a nominal interest rate are quite similar. The only real difference between the two interest rates are that a nominal interest rate include the cost of inflation where as the real interest rate does not.
Annual Interest Rate divided by 12= Monthly Interest Rate
Interest rates change on a daily basis, so there is no legal interest rate. If you mean predatory lending then google this subject matter and speak to a professional about this situation. There is a max that a Mortgage Banker or Loan Officer can give you when it comes to interest rate quotes.
A nominal interest rate is an interest rate that does not factor in the rate on inflation. Nominal interest rate could also refer to an interest rate that does not adjust for the full effect of compounding.
Let i = annual rate of interest. Then i' = ((1+i )^(1/12))-1 Where i' = monthly rate of interest
The answer for rate in simple interest is =rate= simple interest\principle*time