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Silent authority, assertiveness, and exchange are three sources of power.
Effective Annual Rate
The annualized rate of interest on a loan or financial product, adjusted for the effects of compounding.
Continuous Compounding
A mathematical approach where interest earnings are immediately reinvested to generate additional earnings continuously.
Stated Rate
The annual interest rate stated on a financial instrument, such as a loan or bond, not adjusting for compounding or fees.
Interest-Only Loan
A loan where the borrower is required to pay only the interest on the principal balance for a set period of time.
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