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example, may have its interest compounded every year: in this case, an account with $ initial principal and % interest per year would have a balance of $ at the end of the first year, $ at the end of the second year, and so on. in order to define an interest rate fully, and enable one to compare it with other
compounded interest rate on deposits or advances. for instance, the yearly rate for a loan with % interest per month is approximately % per annum. this equivalent yearly rate may be referred to as annual percentage rate, annual equivalent rate, effective interest rate, effective annual rate, and by other...
https://www.definitions.net/definition/Compound+Interest