All stars emit energy and some of it is in the form of light. All stars can be seen without a telescope on a clear night. 7). Marcus has learned that the Sun is a star, but not the largest star in our galaxy.
Interest rate. Interest rate is the percentage of the face value of a bond or the balance in a deposit account that you receive as income on your investment. If you multiply the interest rate by the face value or balance, you find the annual amount you receive. For example, if you buy a bond with a face value of $1,000 with a 6% interest rate, you'll receive $60 a year. Similarly, the percentage of principal you pay for the use of borrowed money is the loan's interest rate.
Donât Forget Inflation! The nominal interest rate (or money interest rate) is the percentage increase in money you pay the lender for the use of the money you borrowed. For instance, imagine that you borrowed $100 from your bank one year ago at 8% interest on your loan.When you repay the loan, you must repay the $100 you borrowed plus $8 in interestâa total of $108. But the nominal interest rate doesnât take inflation into account.he diagram below illustrates the relationship between nominal interest rates, real interest rates, and the inflation rate. As shown, the nominal interest rate is equal to the real interest rate plus the rate of inflation 1.