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Observational methods can be used to provide information on past behavior.
Compounded Annually
A method of calculating interest where the interest is added to the principal sum each year, thus each subsequent interest calculation is made on an increased principal.
Present Value
The current value of a future amount of money or stream of cash flows given a specified rate of return.
Future Value
The amount of money an investment is expected to be worth in the future, considering interest or capital gains.
Interest Rate
The amount charged by a lender to a borrower for the use of assets, expressed as a percentage of the principal.
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