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Your state prison system is determined to reduce the recidivism rates of adult offenders leaving the system.To accomplish this goal,a pre-release program is implemented.The Director of the department of corrections suggested an ideal design involving:
Compounded Annually
Interest calculated once per year on the initial principal, including all interest from previous periods.
Compounded Monthly
An interest calculation method where interest is added to the principal balance on a monthly basis, with each month's interest calculation based on the principal plus all previously compounded interest.
Insurance Premium
The amount of money an individual or business must pay for an insurance policy.
Face Value
(1) The amount paid at maturity of a Treasury bill or commercial paper. (2) The initial principal amount of a mortgage.
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