Examlex
Identify and explain the three main threat clusters identified in the text.
Compounded Continuously
The process whereby interest is calculated on an initial principal and subsequently on the accumulated interest of previous periods, assuming the compounding occurs infinitely within a given time.
Effective Annual Rate
The actual interest rate an investment, loan, or savings account will yield after accounting for compounding.
Rate
The percentage or proportion of a specific quantity or value, often used in contexts like interest rates, return rates, or growth rates.
Compounded Monthly
The process of calculating interest on an investment or loan on a monthly basis, where the accrued interest is added to the principal.
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