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Shaping is an appropriate method for developing new behavior when
Effective Annual Rate
The actual return on an investment or the real rate of interest on a loan, taking into account the effect of compounding over a period.
Amortized Loan
An amortized loan is a loan where the principal is paid down over the life of the loan, typically through equal payments.
Present Value
The equivalent value today of cash flows or a sum of money anticipated in the future, using a predetermined return rate.
Annuity
A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.
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