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Nominal Annual Rate

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Nominal annual rate
An effective rate per period multiplied by the number of periods in a year. Same as annual percentage rate.

Annual Percentage Rate
The cost of funds or interest rate for an entire year expressed as a single percentage. Significantly, the APR does not account for compounding. For example, if the APR is 36%, the percentage is 3% per month, but the interest rate or cost of funds for the entire year may be greater than 36% due to the effects of compounding. By law, a credit card company or other lender must inform the customer of the APR before any agreement is signed. The APR provides the customer with a convenient number against which to compare the cost of funds for other loans or investments. It is less commonly called the annual rate of return or the nominal annual rate.


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GIC said the global downturn dragged down its 20-year nominal annual rate of return in Singapore dollar terms to 4.
Those who choose the limited service will be able to access the information resource center, member services, Foundation information, Certified Protection Professional, and educational program sections of ASISNET, plus use the electronic bulletin board, for a nominal annual rate.
t~ in Equation (12) are expressed as semiannual cash flows, as in a corporate bond, y is the nominal annual rate divided by two.
 
 
 
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