What is the term for this rate?
Can someone please help me clarify something about rate of returns.
Let say I lend money to someone $100 for 5 years at 12% per year.
If I lend it at annual amortization, I will get $12 in the first year as interest. My return on capital is 12%.
If I lend it at monthly amortization, I will get $10.28 in interest in the first year. My return on capital 10.28%
What is the 10.28% called?
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