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Which of the following is a reinforcing action that could be taken based on the outcomes of performance measurement?
Monthly Compounding
The process where interest earned is added to the principal sum every month, so that from that moment on, the interest that has been added also earns interest.
Effective Interest Rate
Represents the real cost of borrowing or the real yield on an investment, accounting for compounding periods within a year.
Annual Payments
Regular payments made once per year towards the principal and/or interest of a loan or financial obligation.
Nominal Rate
The interest rate stated on a loan or investment agreement, not accounting for inflation or compounding effects.
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