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The field of organizational behaviour relies on common sense to understand organizational phenomena.
Amortized Loan
a loan in which the principal and interest are paid down over time through fixed monthly payments.
Effective Rate
The effective rate, often referred to as the effective annual rate, is the interest rate on a loan or financial product re-compounded on a yearly basis.
Amortization Schedule
An amortization schedule is a table detailing each periodic payment on an amortizing loan, illustrating how the principal amount is reduced over time.
Effective Rate
The actual interest rate an individual pays on a loan or earns on an investment, accounting for compounding.
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