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#reading-6-time-value-of-money

Question

Formula

EAR =**[...]**

EAR =

Answer

(1 + periodic interest rate)^{m} - 1

Tags

#reading-6-time-value-of-money

Question

Formula

EAR =**[...]**

EAR =

Answer

?

Tags

#reading-6-time-value-of-money

Question

Formula

EAR =**[...]**

EAR =

Answer

(1 + periodic interest rate)^{m} - 1

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**Subject 1 Time Value of Money and Interest Rates**

licate interest rates: Inflation: When prices are expected to increase, lenders charge not only an opportunity cost for postponing consumption but also an inflation premium that takes into account the expected increase in prices. <span>The nominal cost of money consists of the real rate (a pure rate of interest) and an inflation premium. Risk: Companies exhibit varying degrees of uncertainty concerning their ability to repay lenders. Lenders therefore charge interest rates that incorporate default

licate interest rates: Inflation: When prices are expected to increase, lenders charge not only an opportunity cost for postponing consumption but also an inflation premium that takes into account the expected increase in prices. <span>The nominal cost of money consists of the real rate (a pure rate of interest) and an inflation premium. Risk: Companies exhibit varying degrees of uncertainty concerning their ability to repay lenders. Lenders therefore charge interest rates that incorporate default

status | not learned | measured difficulty | 37% [default] | last interval [days] | |||
---|---|---|---|---|---|---|---|

repetition number in this series | 0 | memorised on | scheduled repetition | ||||

scheduled repetition interval | last repetition or drill |

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