Periodic Interest Rate: The periodic interest rate, sometimes called the nominal rate, is the interest rate a lender charges on the amount you borrow. Lenders are also required to tell you what a loan will actually cost per year, expressed as an annual percentage rate (APR). The APR combines any fees the lender may charge with a year of interest charges to give you the true annual interest rate. That allows you to compare loans on equal terms. For example, suppose you take a $10,000 loan at 10% interest. You pay an origination fee of $350, so you actually borrow $9,650. Since you are getting a smaller loan, but repaying the full $10,000 with interest, the APR is closer to 10.35%. The periodic rate is also the interest rate a bank or other financial institution pays on amounts you deposit. If you’re earning compound interest, the periodic rate will be lower than the annual percentage yield (APY).

 

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Periodic Interest Rate: The periodic interest rate, sometimes called the nominal rate, is the interest rate a lender charges on the amount you borrow. Lenders are also required to tell you what a loan will actually . . . View Full Definition

Periodic Law: The periodic law states that physical and chemical properties of the elements recur in a regular way when the elements are arranged in order of increasing atomic number.

Periodic Payment Plan: Accumulation of capital in a mutual fund by making regular payments on a monthly or quarterly basis.

Periodic Inventory Method: A system of accounting for inventory in which cost of goods sold is determined and inventory is adjusted at the end of the accounting period, not when merchandise is purchased or sold.