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Rate of Return
The financial outcome, either positive or negative, of an investment within a set period, delineated as a proportion of the investment’s initial outlay.
Interest Rate
The percentage charged on a loan or paid on deposits over a period of time, often annually.
Future Value
The estimated value of an investment at a specific future date, considering factors like interest rates or returns over time.
Compounding
The process by which the value of an investment increases exponentially over time due to earning interest on both the initial principal and the accumulated interest.
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