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According to the Toyota Motor Company, waiting time is necessary in production and is not classified as waste.
Effective Interest Rate
The real rate of interest earned or paid on an investment or loan, taking into account the effect of compounding.
Finance Charge
A fee representing the cost of credit, or the cost of borrowing, including interest and other charges.
Annual Effective Rate
The annual rate that reflects the compounding of interest, offering a true reflection of the financial product's profitability.
Monthly Compounded
Interest calculation method where interest is added to the principal balance every month, increasing the amount on which future interest is calculated.
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