In describing investments and loans, the stated interest rate is known as theorrate.periodic or effectiveperiodic or compoundingannual or nominalannual percentage yield or effective

Stated interest rate is the rate of interest which actually a borrower pays or the rate of interest…

Answered: In describing investments and loans,…

In describing investments and loans, the stated interest rate is known as the rate. or O periodic or effective O periodic or compounding O annual or nominal annual percentage yield or effective

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter7: Using Consumer Loans

Section: Chapter Questions

Problem 3LO

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Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

In describing investments and loans, the stated interest rate is known as the
or
rate.
periodic or effective
periodic or compounding
annual or nominal
annual percentage yield or effective

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