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Variances sometimes signal to managers that their strategies are ineffective.
Simple Interest
Interest determination based strictly on the principal sum, thereby excluding any interest that may have accrued in past periods from the calculation.
Non-Interest-Bearing
Pertaining to debt or security that does not earn interest over time, usually issued at a discount to its redemption value.
Simple Interest
The calculation of interest that exclusively considers the initial amount of money deposited or borrowed, without compounding.
Promissory Note
A budgetary instrument which holds a written assurance from one party to compensate another with a predetermined sum of money, either instantly on demand or at a pre-agreed date.
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