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Performance compensation that is tied to outcomes out of the employees' control will provide employees with the incentive to work hard.
Nominal Interest Rate
The rate of interest before adjustments for inflation, reflecting the rate at which money can be borrowed or lent.
Monthly Payments
Regular payments made on a monthly basis towards settling a financial obligation, such as a loan or mortgage.
Effective Annual Rate
The effective annual rate is the interest rate on a financial product restated from the nominal rate as an annual rate that takes into account compounding over a given period.
Nominal Annual Rate
The interest rate stated on a loan or financial product, not accounting for compounding or inflation over time.
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