Nominal rate which is quoted to consumers on loans is considered as__________?
Correct answer: A. Annual percentage rate
- A. Annual percentage rate
- B. Annual rate of return
- C. Loan rate of return
- D. Local rate of returnCompare Investment Apps
Explanation
The nominal borrowing rate quoted to consumers, without treating intra-year compounding as a separate effective rate, is commonly stated as the annual percentage rate. Annual rate of return usually describes an investment rather than a loan quote.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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