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For each historical identification question, define the term and briefly describe its historical significance.
John Locke
Compound Interest
Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods, leading to exponential growth.
Interest Rate
The percentage of a sum of money charged for its use, typically expressed on an annual basis, affecting loans, mortgages, savings, and investments.
Discounted Cash Flow
A technique for determining the value of an investment by considering the future cash flows it is projected to generate, factoring in the time value of money.
Present Value
Today's worth of a single sum or series of future cash flows, discounted at a particular rate of return.
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