Final answer:
The 'Stated Interest Rate' refers to the interest rate mentioned in a loan agreement or financial contract, used to calculate the interest charges on the loan or investment.
Step-by-step explanation:
The 'Stated Interest Rate' refers to the interest rate that is explicitly stated in a loan agreement or a financial contract. This rate is usually expressed as an annual percentage and is used to calculate the amount of interest that will be charged on the loan or investment.
For example, if a loan agreement states an interest rate of 5% per year, it means that the borrower will be charged 5% of the loan amount as interest every year. This rate does not take into account any compounding or additional fees that may be associated with the loan.
In summary, the stated interest rate is the rate that is explicitly mentioned in a financial agreement and is used to calculate the interest charges on the loan or investment.