Examlex
Define the following terms
-text
Interest Compounded
The process whereby interest is added to the principal sum, so that from that moment on, the added interest also earns interest, leading to exponential growth.
Annuity Growth Rate
The rate at which the value of an annuity investment increases over time due to interest and investment income.
Present Value
The current estimation of a future financial sum or series of payments, when discounted at a specific rate of return.
Discount Rate
The interest rate charged to commercial banks and other depository institutions for loans received from the central bank's discount window; also used in discounted cash flow (DCF) analysis to present value future cash flows.
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