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Compounding
The financial process where an investment earns interest not only on the principal amount but also on the accumulated interest over time.
Compound Interest
This involves calculating interest on the original sum of money plus the interest that has gathered over preceding intervals, whether for a deposit or a loan.
Time Value
The viewpoint that money in one's possession now is considered more valuable than the same amount in the future, thanks to its ability to generate profits.
Money
A medium of exchange, a unit of account, and a store of value used to facilitate transactions and measure the value of goods and services.
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