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Difference between effective and nominal interest rate

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Q1. Discuss the difference between effective interest rate and nominal interest rate. Please give some daily life examples related to these two concepts if possible.

Q2. Discuss the power of compound interest rate and the application of this concept in your daily life.

Q3. Consider the impact of inflation on the time value of money. How the value of money will change if the inflation rate increases? What will happen if the inflation rate decreases to zero?

Reference no: EM133115340

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