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A lagging variable can be recognized by the fact that
Compounded Annually
Interest calculated once a year on both the initial principal and the accumulated interest from previous periods.
Compounded Monthly
Interest on an investment or loan calculated and added to the principal balance monthly, where each month's interest calculation includes the previous month's interest.
Deferred Annuity
A financial security provided by insurers that holds back the distribution of income, either through regular installments or a one-time sum, until it's opted for by the investor.
Ordinary Annuity
A series of equal payments made at regular intervals, with the first payment occurring at the end of the period.
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