Examlex
Explain the differences between a centralized and decentralized approach to database design.
Monthly Compounding
The process wherein the interest earned on an investment is added to the principal sum every month, and from then on, the interest for future periods is calculated on the new total.
Effective Annual Rate
The effective annual rate is the actual return on an investment after accounting for compounding interest over a one-year period.
Nominal Annual Rate
The interest rate stated on a loan or investment agreement, not adjusted for inflation or other factors that affect real value.
Compounded Monthly
The process of calculating interest on both the initial principal and the accumulated interest from previous periods, done monthly.
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