Quarterly rate and Quid pro quo: Difference between pages

Revision as of 15:39, 20 August 2013

Latin phrase that means 'what for what or something for something'.

The concept of getting something of value in return for giving something of value.

For example for a contract to be binding, it usually must involve the exchange of something of value.

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-The quarterly rate of interest (or yield) is a quoting convention for the simple interest ''nominal annual rate'' for compounding once per quarter (four times per year).
+Latin phrase that means 'what for what or something for something'.
-For example, if the quoted quarterly rate is 6.00%, the amount of interest compounded quarterly is 6.00%/4 = 1.50%.
+The concept of getting something of value in return for giving something of value.
+For example for a contract to be binding, it usually must involve the exchange of something of value.
-Not to be confused with the related ''annual effective'' rate, which in this case is 1.015<sup>4</sup> - 1 = 6.14%.
 == See also ==
-* [[Annual effective rate]]
+* [[Consideration]]
-* [[Nominal annual rate]]
-* [[Periodic rate of interest]]