Business Studies, asked by jinny779, 6 hours ago

what is effective rate of interest?how it differ from nominal rate of interest ?

Answers

Answered by BANGTANARMYGIRL07

Answer:

Nominal interest rate is also defined as a stated interest rate. This interest works according to the simple interest and does not take into account the compounding periods. Effective interest rate is the one which caters the compounding periods during a payment plan.

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