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How Does CHAP Work

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How does CHAP work?


Definitions:

Present Value

The current assessment of a future sum of money or cash flows, given a designated return rate.

Compounded Quarterly

The calculation of interest on the principal amount and previously earned interest on a quarterly basis.

Annuities

Financial products that provide a stream of payments over time in exchange for an initial lump sum investment.

Periodic Interest Rate

The interest rate charged or paid over a specific period of time, often less than one year, such as a month or quarter.

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