For Each Historical Identification Question, Define the Term and Briefly

question 78

Essay

For each historical identification question, define the term and briefly describe its historical significance.
-Louis the Pious

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Definitions:

Compounded Monthly

A method of calculating interest where the accrued interest is added to the principal sum each month, so that each subsequent interest calculation is made on a slightly higher amount.

Compounded Annually

The practice of calculating and adding interest to the initial amount of money once every year, increasing the future accruals of interest.

Amortized

Amortized refers to gradually reducing the principle amount owed on a debt over time through a fixed repayment schedule.

Compounded Monthly

Interest on an investment or loan calculated each month and added to the principal, affecting the amount of future interest.