PAYE (Pay-As-You-Earn)

PAYE is a scheme for the collection of income tax due from the earnings of an individual. In this scheme, tax is deducted by the employer before wages or salary is paid to the employee.

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Nominal

In name only. Differences in compounding cause the nominal rate to differ from the effective interest rate. Inflation causes the purchasing power of money to differ from one time to another.


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