Revision as of 22:48, 8 July 2012 edit 134.36.86.233 (talk) →‎Nominal versus effective interest rate ← Previous edit		Revision as of 16:51, 14 October 2012 edit undo 41.222.183.40 (talk) →‎See also Tag: section blanking Next edit →
Line 31: ===Daily compounding=== A loan with daily compounding will have a substantially higher rate in effective annual terms. For a loan with a 10% nominal annual rate and daily compounding, the effective annual rate is 10.516%. For a loan of $10,000 (paid at the end of the year in a single [[lump sum]]), the borrower would pay $51.56 more than one who was charged 10% interest, compounded annually. ~~== See also ==~~ * [[Time value of money]] * [[Interest]] * [[Compound interest]] * [[Effective interest rate]] * [[Real interest rate]] * [[Real versus nominal value (economics)]] * [[Zero interest rate policy]] == References ==

Nominal interest rate: Difference between revisions