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What are the common problems with using operational data?
Simple Interest
Interest calculated only on the principal amount of a loan or investment, rather than on previously earned interest.
Monthly Basis
pertaining to or calculated over the period of one month.
Amortized Loan
A loan with scheduled periodic payments that consist of both principal and interest, designed to pay off the debt by the end of the term.
Effective Rate
The actual interest rate earned or paid on an investment, loan, or other financial product, accounting for the effect of compounding.
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