What do we mean by nominal and effective interest rates?

Engineering Fundamentals: An Introduction to Engineering (MindTap Course List)
5th Edition
ISBN:9781305084766
Author:Saeed Moaveni
Publisher:Saeed Moaveni
Chapter20: Engineering Economics
Section20.4: Effective Interest Rate
Problem 4BYG
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What do we mean by nominal and effective interest rates?

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