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Desiree and Johan Have Been Dating for Several Months

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Desiree and Johan have been dating for several months.One night,Desiree says,"We've been dating for a while now.I'm wondering if we have a future together." Johan responds,"I hope so.I've been wondering myself if we might want to make our relationship more formal." Desiree says,"What did you have in mind?" Johan says,"Well,I don't think an engagement is right just now.But I would like us to commit to dating exclusively." Desiree says,"That was kind of my thinking,too." What strategy for escalating or maintaining a relationship are they employing?


Definitions:

Compounded Monthly

The process where interest is calculated on a monthly basis and added to the principal, allowing it to earn interest in subsequent months.

Perpetuity

A type of annuity that pays an infinite series of payments, continuing indefinitely.

Compounded Monthly

Refers to the process where interest is added to the principal balance of a loan or deposit so that the added interest also earns interest from that point on. This compounding occurs every month.

Withdrawals

The act of removing funds from a bank account or investment.

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