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Which example is not basic?
Compounded Annually
The process of earning interest on both the initial principal and the accumulated interest from previous periods, calculated once per year.
Compounded Monthly
A calculation method for interest where the interest earned is added to the principal at the end of each month, causing subsequent interest to be based on the increased balance.
Effective Annual Rate
The real interest rate on an investment or loan, considering the effects of compounding over a year.
Effective Annual Rate
The yield on a loan or investment taking into account the impact of compounding throughout a year.
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