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Compounded Monthly
A method of calculating interest where the interest earned each month is added to the principal, thereby increasing the amount upon which future interest is calculated.
Compounded Quarterly
Interest calculation where the interest is added to the principal four times a year, allowing future interest to be earned on the prior periods' interest.
Outstanding Balance
The amount of money owed that has not yet been paid back.
Compounded Semi-Annually
Interest calculation method where the accrued interest is added to the principal sum twice a year, leading to an increase in future interest amounts.
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