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18-19 A strategy to lower deposits on Fridays can lower reserve requirements for a bank.
Compound Interest
Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.
Payback Period Method
A capital budgeting method that calculates the time required for an investment to generate cash flows to recover its initial cost.
Net Present Value
A method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.
Internal Rate of Return
A metric used in financial analysis to estimate the profitability of potential investments.
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