Examlex
Interest is the opportunity cost of money.
Compound Interest
Interest computed not only on the original amount invested or loaned but also on the interest that has been added to this principal over past periods.
Simple Interest
Interest computed solely on the initial sum, without accumulation through compounding.
Income Earned
Revenue generated from a person's job, investments, or business operations, excluding capital gains or gifts.
Annual Salary
The total amount of money earned by an employee in one year before taxes and deductions.
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