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The best managerial decision makers are autocratic and incremental.
Compounded Annually
Refers to the process whereby the interest earned on an investment is added to the principal at the end of each year, and the following year's interest calculation includes the added interest from the previous year.
Annual Interest Rate
The percentage of principal charged by the lender for the use of its money expressed as an annual rate.
Interest Rate
The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan balance.
Discount Rate
The interest rate that a central bank charges financial institutions for short-term loans, or the rate used in discounted cash flow analysis to determine the present value of future cash flows.
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