Define the terms nominal interest rate and effective interest rate. Why is it important to be able

Question:

Define the terms nominal interest rate and effective interest rate. Why is it important to be able to distinguish between these two different rates?
In questions 22 through 25, indicate whether you would solve for the of a single sum, the present value of a single sum, the of an annuity, or the present value of an annuity.
Future Value
Future value (FV) is the value of a current asset at a future date based on an assumed rate of growth. The future value (FV) is important to investors and financial planners as they use it to estimate how much an investment made today will be worth...