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Compounded Annually
A method in which interest is calculated once per year and added to the total sum, affecting the principal for the next period.
Promissory Note
A promissory note is a financial instrument that contains a written promise by one party to pay another party a determinate sum of money either on demand or at a specified future date.
Compounded Semi-Annually
The method of calculating interest on a principal where the interest is computed twice a year and each interest payment is added to the principal for future calculations.
Discounted Rate
A reduced price or rate from the original cost, typically applied to encourage prompt payment or purchase.
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