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Agency theory assumes that managers:
Compounded Monthly
This term describes the process where interest earned is added to the principal, and future interest payments are calculated based on the new total, on a monthly basis.
Monthly Payment
A regular payment made each month on a loan, mortgage, or other form of debt, typically including both principal and interest components.
Loan Term
The duration of time agreed upon by the lender and borrower for the repayment of a loan.
Discount Rate
The interest rate charged to commercial banks and other depository institutions for loans received from a central bank's discount window; or alternatively, used in discounted cash flow (DCF) analysis to present value future cash flows.
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