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Compounded Monthly
An interest calculation method where interest earned is added to the principal balance every month, increasing the amount of future interest accrued.
Compounded Semi-Annually
Interest calculation method where the interest is added to the principal biannually, leading to interest on interest.
Quarterly Compounded
Interest on an investment or loan that is calculated and added to the principal balance four times a year.
Nominal Rate
The advertised or stated interest rate on a loan or investment, not accounting for compounding or inflation.
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