Examlex
Today it is possible to travel all over the world, especially if you visit major metropolitan areas, without ever having to eat anything but McDonald's. This is an example of:
Simple Interest
A way of calculating interest where the interest charge is based on the original principal amount alone.
Compounded Annually
A method of calculating interest where the interest amount is added to the principal sum at the end of each year, affecting the total interest for the next year.
Interest on Interest
The compound interest that is calculated not only on the initial principal but also on the accumulated interest of previous periods.
Time Value
The principle that current money has a higher value than the same amount would in the future, given its potential to earn more.
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