Compounding the interest means earning interest on interest , so we call the result compound interest.
举一反三
- The compound interest is the interest on interest.
- The interest rate can be divided into spot interest rate and forward interest rate according to the time of interest calculation.
- The relationship among real interest rate, nominal interest rate, and expected inflation rate is _________. A: real interest rate = nominal interest rate+ expected inflation rate B: real interest rate = nominal interest rate- expected inflation rate C: real interest rate = expected inflation rate - nominal interest rate D: nominal interest rate = real interest rate - expected inflation rate
- When uncovered interest parity holds, it means that:
- Emily ____________ things from all types of materials. A: makes an interest to make B: takes an interest to make C: takes an interest in making D: makes an interest in making