Please Define the Following Key Terms

question 23

Essay

Please define the following key terms. Show Who? What? Where? When? Why Important?
-Alsace and Lorraine

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Definitions:

Discount Rate

The interest rate that the Federal Reserve charges commercial banks for loans, or a rate used in discounted cash flow analysis to determine the present value of future cash flows.

Compounded Semi-annually

Interest calculation method where the interest is added to the principal twice a year, leading to a growth in the amount at a faster rate than simple interest.

Compounded Quarterly

This term refers to the calculation and addition of interest to the principal sum of a deposit or loan on a quarterly basis.

RRSP

A Canadian retirement savings plan that defers taxes on contributions and investment earnings until withdrawal.